R1 When the U.S. dollar appreciates against the yen, the yenSelect one:O a.not relatedO b. appreciatesO c. depreciatesWhen Safeway supermarkets in Jordan buys strawberries from EgyptSelect one:O a. it may use any currency it chooses.b. the transaction shows up in the Jordanian capital account.O c. it must use dollars to pay Egyptian farmers.Od. it must use Egyptian pounds to pay Egyptian farmers.

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When the U.S. dollar appreciates against the yen, the yen Select one: a. not related b. appreciates O c. depreciates

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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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

When the U.S. dollar appreciates against the yen, the yen
Select one:
O a.
not related
O b. appreciates
O c. depreciates
When Safeway supermarkets in Jordan buys strawberries from Egypt
Select one:
O a. it may use any currency it chooses.
b. the transaction shows up in the Jordanian capital account.
O c. it must use dollars to pay Egyptian farmers.
Od. it must use Egyptian pounds to pay Egyptian farmers.

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