Answer:
The statement is false. The largest component of GDP is private consumption, or simply: consumption.
Explanation:
Consumption includes all purchases of goods and services made by individuals and households except for the purchase of new houses (these are considered investments).
In the U.S., consumption accounts for around 70% of GDP. This is why some economists say that the U.S. is a consumer-based economy.
Answer:
Sell the put option. The put option is better and advantageous .
Explanation:
The call option is trading far below the strike price and poses risk. The price may not go up to $1.25 and hence not advisable. The put option is better as we stand to make a profit margin ($1.15 / Euro) if it sells the put at he strike price immediately. Given that the difference is high, it is unlikely that the price will move against us and we shall exercise the option as soon as the margin starts reducing.
Answer:
1. Global depository receipts
2. External commercial borrowing
3. American depository receipts
4. Foreign currency convertible bonds
Explanation:
1. Global depository receipts. When a company buys shares of a foreign company, a certificate will be issued by the local depository bank, which allows for security supported by the shares purchased.
Here, Gracious ltd could raise funds by buying of shares in a company in India hence gives the company an avenue to hold shares in foreign country.
2. External commercial borrowing. These are loans granted to viable companies outside of India who are venturing into commercial businesses. Before theses loans are given, there is what is called eligibility status; which must be reviewed and thus confirm with the reserved bank of India before such loans are given.
3. American depository receipts. These are negotiable capital market instruments, issued by a bank in the United States, which shows the number of shares held by a foreign company, trading in the US capital market. A company could use this as a way of raising funds in the India capital market because it is well backed by the bank in the country where the company is.
4. Foreign currency convertible bonds. Here, a bond is issued in a different currency distinct from the issuer's local currency. What this means is that the money being sought for by the issuing company comes in a foreign currency denomination.
Answer:
a.
1 July 2017 Notes receivable $79000 Dr
Cash $79000 Cr
b.
31 Dec 2017 Interest receivable $3950 Dr
Interest revenue $3950 Cr
c.
30 June 2018 Interest receivable $3950 Dr
Interest Revenue $3950 Cr
1 July 2018 Cash $7900 Dr
Interest receivable $7900 Cr
d.
1 July 2018 Cash $79000 Dr
Notes receivable $79000 Cr
Explanation:
a.
The receipt of note against issuing loan will cause a credit to cash against notes receivable.
b.
The interest from July to Dec 2017 relates to 2017. Following accrual principle it will be recorded as interest revenue and as it is not received so an asset Interest receivable will be debited.
The interest expense for 6 months is = 79000 * 0.1 * 6/12 = 3950
c.
First we will record the remaining interest on 30 June 2017. Remaining interest = 7900 - 3950 = 3950
Then we will debit cash on July 1 when interest is received and credit interest receivable to close the account.
d.
The cash will be debited and notes receivable account will be closed by crediting it.
Answer:
The correct answer is letter "B": production by U.S. citizens wherever they work in the world.
Explanation:
Gross National Product or GNP is one of a range of indicators economists use to calculate the economic output of a country. GNP is the market value of all goods and services produced by a country's citizens for one year, whether those goods were manufactured inside the country or produced elsewhere.
