Answer:
B. increases; decreases
Explanation:
Foreign exchange market can be defined as type of market in which the currency of one country is converted into that of another country.
For example, the conversion of dollars of the United States of America can be converted into naira (Nigeria) at the foreign exchange market.
Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.
The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis that states that asset (share) prices reflect all information and it is very much impossible to consistently beat the market.
Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.
An interest rate can be defined as an amount of money that is charged as a percentage of the total amount borrowed from an individual or a financial institution.
Generally, if the interest rate rises in the United States relative to other nations, then in the foreign exchange market the demand for dollars increases and the supply of dollars decreases because of the high value of the dollar compared to the other currency.
Answer:
The most suitable answer is Stocks may help you protect your money from inflation while bonds may be more susceptible to losing their value over time due to inflation.
Explanation:
Now remember, this is not "guaranteed" as stocks come with higher risks comparing to bonds, yet in US share market, stocks have performed well than the bonds overall. This is because stock prices fluctuate and if the company invested in is performing well, the share prices can sky rocket over a long period while in bonds you don't see this often as they are issued for a specific time and represents the debt capital.
Answer:
Dr Interest Receivable 4,000
Cr Interest Revenue 4,000
Explanation:
Preparation of XYZ Corporation Adjusting entry
Since the XYZ Corporation loaned the amount of $600,000 to another corporation on December 1, 2020 in which XYZ Corporation received a 3 month and 8% interest-bearing note with a face value of $600,000, the first step to take is to find the interest bearing note which is calculated as 4,000(1/12×8%×600,000) and the second step is to record the transaction as :
Dr Interest Receivable 4,000
Cr Interest Revenue 4,000
(1/12×8%×600,000)
