Answer:
$1 = 1.372 CD
Explanation:
Spot rate, 1$ = 1.3750 Canadian dollars
Canadian securities annualized return = 6%
U.S. securities annualized return = 6.5%
Term = 6 month ≅(180 days)
Forward exchange rate in 180 days, 1$ = Spot rate * (1+US rate*6/12) / (1+CD rate*6/12)
= 1.3750 CD * (1 + 6%*6/12) / (1 + 6.5%*6/12)
= 1.3750 CD * (1 + 0.03) / (1 + 0.0325)
= 1.3750 CD * 1.03/1.0325
= 1.371670702179177 CD
= 1.372 CD
So, the the U.S. dollar-Canadian dollar exchange rate in the 180-day forward market is $1 = 1.372 CD
Answer: $8,400
Explanation:
The $9,600 is for 2 years in advance. This can be apportioned per month at a rate of;
= 9,600/24
= $400 per month.
October to the end of the year is 3 months so;
= 400 * 3
= $1,200 will be recorded for the year.
Prepaid Insurance will therefore reduce to;
= 9,600 - 1,200
= $8,400
Answer:
d. $1,876,306.49
Explanation:
As for the provided information,
Total funds needed at end of 4.5 years = $2.2 million
For this current savings are to be invested on a compound interest, where the rate of interest = 3.6%
Compounding period = Annually.
Therefore, future value factor of $1 after 4.5 years @ 3.6% = 1.1726997
The value of $2.2 million as on date = 
= $1,876,306.49
Therefore, the correct answer is
Option d.
Answer:
The new money supply is $1,500
Explanation:
Before we proceed to answer the question according to the scenario painted, we need to make some preliminary calculations as follows;
If the monetary base deposit is $1000 and people hold 1/3 of their money, this means that the;
Reverse deposit ratio = 1/3
Currency deposit ratio = (cash in cash)/cash in deposit = (1/3)/(2/3) = 0.5
Thus mathematically,
money supply = (currency deposit ratio + 1)/(Reserve deposit ratio + Currency deposit ratio) × Monetary Base
Money Supply = (1+1)/(1+1/3) * 1000 = $1,500
Answer:
As per the Securities Act of 1933, John must prove only that the registration statement contained some important omissions
Explanation:
The Securities Act of 1933 also known as the "Truth in Securities" law. This law requires that companies have to submit information to the investors about the securities being offered for public sale.
It was the first major federal securities law passed.
President Roosevelt stated that the law was aimed at correcting some of the wrongdoings included insider trading, the sale of fraudulent securities, and other wrongdoings that some financial institutions and professional stock traders engaged in.
In the given question,
John must prove only that the registration statement contained some important omissions as per the Securities Act of 1933
