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2 years ago

Which section of the balance-of-payments statement summarizes u.s. trade in currently produced goods and services?

1 answer:

8 0

US commerce in goods and services that are now being produced is outlined in the balance of payments statement's current account section.

<h3>What does a favorable or unfavorable trade balance mean?</h3>

A surplus in trade is shown by a positive trade balance, while a deficit in trade is indicated by a negative trade balance. The BOT is crucial in figuring out a nation's current account. The following equation can be used to determine the trade balance: The value of goods and services sold to customers in other nations is known as the value of exports.

<h3>The balance of payments categorizes transactions into which accounts?</h3>

Transactions are split between the current account and the capital account in the balance of payments. When a distinct, typically very modest capital account is reported separately, the capital account is occasionally referred to as the financial account. Transactions in commodities and services are included in the current account.

<h3>What is the current trade balance?</h3>

For a country, the trade balance includes both exports and imports. This element makes up the majority of the current account, which is also the balance of payments' biggest component. Trade deficits are beneficial for emerging countries even if the majority of countries want to avoid them.

Learn more about balance of trade:

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Which element of the promotional mix has the inherent weakness of high absolute costs and an inability to obtain direct feedback

lianna [129]

Answer:

Advertising.

Explanation:

Advertising increases costs of product. Customers have to pay high price for the products heavily advertised. Companies do not forgo their profits.

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3 years ago

White company had no investments prior to the current year. It had the following transactions involving short-term available-for

LiRa [457]

Answer:

Gray stocks 90,700 debit

Cash 90,700 credit

Duke- Bond 180,000 debit

Cash 180,000 credit

Cash 65,400 debit

Gray stocks 45,350 credit

Gain on Securities 20,050 credit

Dec 1st

Cash 3,600 debit

Interest revenue 3,600 credit

Explanation:

Jan 10th

6,000 x $15 + 700 fee = $90,700

June 1st we record at cost as it was purchase at par.

July 1st

3,000 x $22 - 600 fee = $65,400

Cost: 90,700 x 3,000/6,000 = 45,350

Gain 65,400 - 45,350 = 20.050‬

December 1st

180,000 x 0.02 = $3,600

the rate is 4% payment semiannually so we divide the rate by 2.

4 0

3 years ago

Assume that you manage a risky portfolio with an expected rate of return of 14% and a standard deviation of 30%. The T-bill rate

Leviafan [203]

Answer:

a. 87.5%

b. Stock A: 21%; Stock B: 28%; Stock C: 38.5%; T-bill: 12.5%

c. Standard deviation of the client's portfolio: 26.25%

Explanation:

a. y is calculated as:

Risky portfolio return * y + T-bill return * (1 - y) = Expected return of the portfolio <=> 0.14y + 0.06 ( 1-y) = 0.13 <=> y = 87.5%

b. Client investment in each stock and in T-bills:

Client investment in each stock = 0.875 * percentage of each stock in a risky portfolio ( because the risky portfolio is accounted for 87.5% of the whole investment)

=> Stock A = 24% x 0.875 = 21% ; Stock B = 32% * 0.875 = 28% ; Stock C = 44 * 0.875 = 38.5%

Client investment in T-bill = 1- y = 1 - 0.875 = 12.5%

c. Standard deviation is calculated as: Standard deviation of risky portfolio * y = 30% * 87.5% = 26.25% (because standard deviation of return in T-bill is 0)

3 0

3 years ago

This principle suggests that a certain amount of money today has different buying power than the same amount of money in the fut

Taya2010 [7]

Answer:

Time value of money

Explanation:

This principle states that money is more valuable at the moment or present than same amount of money in the future due its potential for increase in profit. A person or an investor that wants to make a return or gain will prefer to have the money now than have the same amount of money in the future. This is due to the potential of the money to increase in terms of earning capacity.

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3 years ago

Richard has $500.00 to invest, but he is willing to borrow money to increase the size of his investment. How much should Richard

liubo4ka [24]

Answer:

c. $125.00

Explanation:

Let us assume the x for invested in portfolio

Invested proportion × expected return of the optimal portfolio + (1 - invested proportion) × risk free rate = expected return

x × 7% + (1 - x) × 3% = 8%

7% x + 3% - 3% x = 8%

4% x = 5%

X = 1.25

Now the invested amount would be

= 1.25 × $500

= $625

So, the borrowed amount would be

= $625 - $500

= $125

8 0

3 years ago