Answer:
The correct answer is D) national saving minus domestic investment
Explanation:
The net capital flow (FNC), also called net foreign investment, refers to the difference between the acquisition of foreign assets by local residents and the acquisition of domestic assets by non-residents. Net capital flows take two forms: foreign direct investment and portfolio investment. Foreign direct investment involves actively managing acquired assets while portfolio investment does not require an active role.
An open economy can therefore buy and sell assets in financial markets generating capital flows.
Answer:
b. buy a strip.
Explanation:
The strip is the option strategy in which we can purchase two options and one call option at the similar strike price and the similar maturity time period. It should be considered at that case when there is high expectation in bearish as compared with the bullish.
Since in the question it is mentioned that there is more bearish than bullish so here the buy a strip would be relevant
hence, the option b is correct
Answer:
d. Credit to lease receivable of $35,259
Explanation:
Date General Journal Debit Credit
Cash $45,000
Lease receivable $35,259
($45000 - $9741)
Interest expense $9,741
[($239826-$45000)*5%]
A) price ceiling set below the equilibrium price
Answer:
Increases the Quantity Supply of apple juice.
Explanation:
According to the law of supply, there is a positive relationship between the price of the good and the quantity supply of that good.
If the price of a particular good increases then as a result the quantity supplied of that good also increases because it will become more profitable for the producers to supply more quantity of goods.
Hence, if the price of apple juice increases then as a result the producers are willing and able to supply more quantity of apple juice.
