Sometimes called the coverage ratio, this ratio measures the risk that interest payments will not be made if earnings decrease.
1 answer:
You might be interested in
Answer:
The answer to this solution is explained in the explanation section below
Explanation:
Solution
Given that:
- The Current Account will decrease or reduce by 120000, net foreign assets decrease.
- Nothing changes, he stocks were earlier with an American company too.
- The Current account increases, there will be no change in net foreign assets (since the check was drawn on a US bank, it means the Spanish person had already had the money in US only).
- Nothing changes, the wine was bought, from Italy, already by the restaurant.
- The Current account decreases by 3500, foreign assets decrease by the same amount.
- The Current account increases, there is no change in assets since the money was already transferred.
Note: kindly find the complete question to this solution attached below
