What are the similarities between the roles of the Federal Reserve and the FDIC?

.) A currency dealer has good credit and can borrow either $1,000,000 or €800,000 for one year. The one-year interest rate in th

d1i1m1o1n [39]

Answer:

The question does not fit the options, since the options all refer to a 2% interest rate in US dollars and a 6% interest rate in euros. While the question states that the interest rate in US dollars is 5% and the interest rate in euros is 4%.

The answer to the question is:

If you borrow $1,000,000 today, you will be able to purchase 800,000€. Or if you borrow 800,000€ today, you will be able to purchase $1,000,000.

Since the forward rate is higher, you should borrow dollars, invest in euros and after a year, purchase back dollars and pay back your debt.

Gain:

= 800,000€ x 1.04 = 832,000€ x 1.4 = $1,164,800, then you pay back your loan = $1,164,800 - ($1,000,000 x 1.05) = $1,164,800 - $1,050,000 = $114,800 gain

Options C will also yield gains:

option C = borrow 800,000€ and buy $1,000,000. After one year you will have $1,020,000 which you can use to purchase 850,000€. Your gain = 850,000€ - (800,000€ x 1.06) = 2,000€

7 0

3 years ago

The ending balance of accounts receivable was $74,000. Sales, adjusted to a cash basis using the direct method on the statement

denpristay [2]

Answer:

The beginning balance in accounts receivable was: $47,500

Explanation:

Sales reported on the income statement were $385,500, Accounts receivable increased of $385,500 during the period.

Sales, adjusted to a cash basis using the direct method on the statement of cash flows, were $359,000. The company collected $359,000 from the sales. Accounts receivable decreased of $359,000 during the period.

The beginning balance in accounts receivable = The ending balance of accounts receivable + Accounts receivable decreased during the period - Accounts receivable increased during the period = $74,000 + $359,000 - $385,500 = $47,500

5 0

3 years ago

A registered representative wishes to give a speech to a group of 35 potential retail clients at a restaurant. The speech is scr

maksim [4K]

Answer:

Prior principal approval must be obtained and a copy of the speech must be retained in your firm's Office of Supervisory Jurisdiction

Explanation:

Because the speech is to be givento 35 attendees, it is under the Retail Communication. Every speech should be honest and of good taste; and the speech must be informational, but far from promotional.

It is not required that the speech content has to be pre-filed with the SEC. A copy must be kept a period of f 3 years for inspection by FINRA examiners. The speech script would be kept on file in the firm's supervisory compliance office that is the Office of Supervisory Jurisdiction.

3 0

3 years ago

When the utility function for a risk-neutral decision maker is graphed (with monetary value on the horizontal axis and utility o

andreev551 [17]

Answer:

The correct answer is letter "D": straight line.

Explanation:

Utility represents the satisfaction a person receives from the use of a good or service. In case there is a risk-neutral decision-maker, that individual is unlikely to vary the value he or she provides to the use of products to remain in a comfort zone. However, the utility could vary according to satisfaction the good or service provides in different situations.

Thus, if plotted in a graph, <em>the value representing the horizontal axis and the utility the vertical axis, there will be a straight line departing from the horizontal axis parallel to the vertical axis.</em>

7 0

3 years ago

Helix reported the following information in its financial statements. Write-offs of accounts receivable were $200 in the current

olya-2409 [2.1K]

Answer:

the Bad debt Expense for the Year is $250

Explanation:

The computation of the bad debt expense is given below:

Bad debt Expense for the Year is

= Current year of Allowance for Doubtful Accounts + Write off in Current Year - Prior year of Allowance for Doubtful Accounts

= $400 + $200 - $350

= $250

Hence, the Bad debt Expense for the Year is $250

7 0

2 years ago