Assume the following to be a portion of the simplified balance of payments statement for a hypothetical country. The values are given in billions of dollars.ExportsImportsCapital OutflowsCapital Inflows$900- $675- $225$135If the central bank has not changed its holding of foreign-currency reserves during this period, then the capital-service account for this country should be equal tobillion.

given information exports = $900 imports = -675 capital outflow = -225 capital inflow = $135

Assume the following to be a portion of the simplified balance of payments statement for a hypothetical country. The values are given in billions of dollars. Еxports $900 - $675 Imports Capital Outflows Capital Inflows - $225 $135 If the central bank has not changed its holding of foreign-currency reserves during this period, then the capital-service account for this country should be equal to S billion.

Assume the following to be a portion of the simplified balance of payments statement for a hypothetical country. The values are given in billions of dollars. Еxports $900 - $675 Imports Capital Outflows Capital Inflows - $225 $135 If the central bank has not changed its holding of foreign-currency reserves during this period, then the capital-service account for this country should be equal to S billion.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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D3)
Ganado Europe (B). Using facts in the chapter for Ganado Europe, assume as in Problem 11.1 that the exchange rate on January 2, 2020, in Exhibit 11.5 dropped from $1.2000 = €1.00 to $0.9000 = €1.00 (Rather than to $1.000/€). Recalculate Ganado Europe’s translated balance sheet for January 2, 2020, with the new exchange rate using the temporal rate method. What is the amount of translation gain or loss? Where should it appear in the financial statements? Why does the translation loss or gain under the temporal method differ from the loss or gain under the current rate method?
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From the following data provided, ascertain what would be the exchange rates that the Bank would quote for an FDI transaction amounting to USD 2 Mn for value cash basis, assuming a margin of 3 paise where., Spot USD/INR = 75.0900/75.1000 ., Cash/Spot : 4/5 paise. Arrive at the exchange rate up to 4 decimal places. Adhere to the steps involved in calculation.
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