Answer:
The correct answer is Interest rate parity (IRP).
Explanation:
The interest rate parity represents an equilibrium statement in which the expected benefit, expressed in national currency, is the same for assets denominated in national currency and assets denominated in foreign currency of similar risk and term, provided that arbitration is not made. . This is because the exchange rate in the currency market between both currencies balances the return on both investments. According to the theory of interest rate parity, several situations can be found that we will see below: interest rate parity discovered and interest rate parity covered.
Answer:
The answer is: If Allen is a professional gambler, he can use his gambling losses to offset the income from his gambling activities.
Explanation:
We can consider the airfare and hotel expenses as income part of Allen's income (+$3,000) but since he lost more money in the casino (-$25,000), the net effect is an economic loss (-$22,000).
That economic loss isn't tax deductible unless he was a professional gambler, then he could offset his income by $22,000.
Answer and Explanation:
In the case when the new customer added $100 to his account so this would rise the loan amount also at the same time it increased the reserve and debt account
The leverage ratio is
= Total asset ÷ equity
= $2,000 ÷ $1,075
= 1.8604
Now the new leverage ratio is
= $2,000 + $100 ÷ $1,075
= 1.9534
So the initial leverage ratio is 1.86 to the new value of 1.95
The bankers should taken into account for distributing the asset is return on each asset
Answer and Explanation:
Given:
Bond price = $10,000
Dividend rate = 7.9% per year
A. Computation of Dividend receive each 6 months :
Dividend rate for 6 month = 7.9% / 2 = 3.95% = 0.0395
Dividend receive each 6 months = Bond price × Dividend rate for 6 month
Dividend receive each 6 months = $10,000 × 0.0395
Dividend receive each 6 months = $395
B. Computation of amount receive at the end of ten years:
Amount receive at the end of ten years is equal to face value of bond
Amount receive at the end of ten years = $10,000
