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kicyunya [14]
3 years ago
7

Explain how each of the following transactions generates two entries—a credit and a debit—in the American balance of payments ac

counts, and describe how each entry would be classified: a. An American buys a share of German stock, paying by writing a check on an account with a Swiss bank. b. An American buys a share of German stock, paying the seller with a check on an American bank. c. The French government carries out an official foreign exchange intervention in which it uses dollars held in an American bank to buy French currency from its citizens. d. A tourist from Detroit buys a meal at an expensive restaurant in Lyons, France, paying with a traveler's check. e. A California winegrower contributes a case of cabernet sauvignon for a London wine tasting. f. A U.S.-owned factory in Britain uses local earnings to buy additional machinery.
Business
1 answer:
ANEK [815]3 years ago
8 0

Answer:

Explanation:

A. An American buys a share of German stock, paying by writing a check on an account with a Swiss bank. - Credit Swiss bank and Debit Capital account as purchase of German Stock

B. An American buys a share of German stock, paying the seller with a check on an American bank. Credit American bank and Debit Capital account as purchase of German Stock

C. The French government carries out an official foreign exchange intervention in which it uses dollars held in an American bank to buy French currency from its citizens. Credit American bank and Debit Capital account as foreign currency exchange

D. A tourist from Detroit buys a meal at an expensive restaurant in Lyons, France, paying with a traveler's check. Credit Traveler's check (Current Account) and Debit Currency transfer (payment for service)

E. A California winegrower contributes a case of cabernet sauvignon for a London wine tasting. it has no financial implication as its a donation.

F. A U.S.-owned factory in Britain uses local earnings to buy additional machinery. No entry as the transaction has nothing to do with country's asset.

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True or False: When refusing an internal request, it is not a good idea to provide an alternative.
Lana71 [14]

Answer:

1st question: false Refusing internal requests often calls for an indirect strategy. Providing adequate reasons and realistic alternatives helps maintain goodwill and a positive working environment.

2nd question: True. Refusals for routine requests should open with a buffer, a neutral statement on which both readerand writer can agree, and should transition into the reasons.

6 0
3 years ago
Read 2 more answers
Which bond would you expect to pay the highest interest rate?
UNO [17]

Answer:

The bond that should pay the highest interest rate is:

d. a bond issued by a new restaurant chain.

Explanation:

This is based on the fact that the new restaurant chain is untested, has higher risk profile and the bondholders are assuming higher risks, and the bond cannot be compared to the bonds issued by the US government, New York State, and General Motors, in that order.  The new restaurant chain will be offering a higher rate of return than others because it is new to the bond market and would like to attract potential bond investors.   Without the higher rate, therefore, it will not be successful in the bond issuance.

4 0
3 years ago
At the very least, Joe Average and Bill Gates are both identically limited by:
shusha [124]

Answer:

The correct answer is option 'B': The 24 hours that comprise a day

Explanation:

For comparison between 2 random variables only those values can be said to be identical that have the same values.

From the given options if we compare Joe and Bill Gates we conclude

1) The 2 person's are not identically limited by wealth as the wealth difference can be large.

2) Similarly they can have a vast difference in their knowledge.

3) Person that has larger wealth and knowledge will naturally have larger influence.

Now since the length of a day is 24 hours and this is a universal truth no matter what the circumstances we conclude that they both are limited by this parameter no matter whatever be the difference between the 2.

4 0
3 years ago
Touchtech earns revenue when edison purchases 100 shares, even if he purchases them from an existing shareholder.
Strike441 [17]

Answer:

A. An increase in the perceived profitability of Touchtech will likely cause the value of Edison's shares to rise.

B. Expectations of a recession that will reduce economy-wide corporate profits will likely cause the value of Edison's shares to decline

Explanation:

The price of the stock changes only because of the changes in the profitability of the firm. If the company is earning lower profits then the prices of the stock will fall and vice versa. So the option A is correct because increase in profitability increases the value of the shares.

So the main thing here is the profitability of the firm which is affected by the recession in the economy because during the recession period the profitability of the firm decreases and so the value of the stock decreases. So the option B is correct

6 0
3 years ago
A rich singer has donated $450,846 to endow a university professorial chair in Bohemian Studies. If the money is invested at 12.
Sedaia [141]

Answer:

Annual withdrawal=  $57,032.02

Explanation:

Giving the following information:

Initial investment (PV)= $450,846

Interest rate (i)= 12.65%

<u>To calculate the annual withdrawal, we need to use the following formula:</u>

PV= Cf / i

Cf= annual cash flow

450,846= Cf / 0.1265

450,846*0.1265 = Cf

Cf= $57,032.02

7 0
3 years ago
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