Answer:
B. an unfavorable balance of trade and payments
Explanation:
- The BOP or the balance of trade is defined as the net gains or net exports that make the balance of payments and is said to be favorable when the country export more and imports less and is a positive change.
- It is said to be negative when the country imports more and exports less thus unfavorable in terms of the trade and payments.
- <u>Hence it means that the country has a deficit and this can impact the services and is not good for the economic growth perspective.</u>
Answer:
A
Explanation:
Economic risk is the risk that macroeconomic conditions would affect the value of investment .
Examples of economic risks are Recession and inflation
Answer:
A.Land $100,000
Building 400,000
B.Land $100,000
Building 395,292
Explanation:
a. Logan's adjusted basis at acquisition date will be the cost of the land and that of the building which is:
Land $100,000
Building 400,000
b. What will be Logan adjusted basis at the end of 2017 :
Land will be: $100,000
Building will be :395,292
($400,000 − $4,708)
Thus the Depreciation is a capital recovery.
Answer:
e). None of the above, because a perfect hedge does not exist
A perfect hedge is nearly impossible
Explanation:
A perfect hedge is a position undertaken by an investor that would eliminate the risk of an existing position, or a position that eliminates all market risk from a portfolio. In order to be a perfect hedge, a position would need to have a 100% inverse correlation to the initial position.
At the time of taking an opposite position in Derivatives Market, Perfect Hedge would mean covering the risk involved in the Cash Market Position completely, i.e. 100%. 2. Imperfect Hedge: When the position in the cash market is not completely hedged or not hedged to 100%, then such a hedge is called Imperfect Hedge.