1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Andrei [34K]
2 years ago
10

A U.S. investor has borrowed pounds, converted them to dollars, and invested the dollars in the United States to take advantage

of interest rate differentials. To cover the currency risk, the investor should:
Business
1 answer:
Lisa [10]2 years ago
4 0

Answer: C. Buy pounds forward.

Explanation:

The investor borrowed in pounds which means that they would have to pay back in pounds. They would therefore need pounds at the end of the investment period but need to be sure of the rate they are converting back to so as to reduce currency risk.

The way to cater for this risk would be to buy pounds in the forward market at a guaranteed rate so that when they are to pay back the pounds, they buy it at the rate they agreed to in the forward market, regardless of what the rate is in the spot market when they want to pay back the pounds.

You might be interested in
Authors<br> d. p. rosenbaum and g. ganson concluded that the<br> d.a.r.e. program _________.
Pani-rosa [81]

Drug Abuse Resistance Education (D.A.R.E.) is a police officer-led  arrangement of classroom exercises that shows kids (normally in rudimentary or center school) how to remain tranquilize free and oppose peer weight.  

According to Rosenbaum and Hanson (1998), D.A.R.E has no critical in general effect on utilizing cigarettes or liquor  

They concluded that, Given the tremendous uses in time and cash required with D.A.R.E., no doubt proceeded with endeavors should center around different systems and projects that may deliver more significant impacts.

5 0
3 years ago
Which are types of income tax that people pay? Check all that apply.
astraxan [27]

Answer;

-Federal

-Local

-State tax

Explanation;

-A federal income tax is a tax levied by the United States Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts, and other legal entities.

-All businesses must pay state income taxes. Some businesses, such as corporations, are taxed as separate entities for income purposes, while the income of other businesses is not taxed separately from the incomes of their principal owners.

-A local tax is usually collected in the form of property taxes, and is used to fund a wide range of civic services from garbage collection to sewer maintenance. The local taxes include:

  • Property tax
  • Operating tax, which is used by some cities in lieu of a business license
  • Sales tax, if your business is engaged in retail sales
  • Income tax, which is rare but may be imposed on businesses operating in larger cities
8 0
3 years ago
Read 2 more answers
Virginia supply offers their customers trade credit with terms 2/15, net 30. this implies that:
Ivenika [448]

This implies that 2%/15 net 30 is a method of giving cash discounts on purchases. What this means is that if the bill is paid within 15 days, there is a 2% discount. Or else, the total amount is payable within 30 days. For instance, if "$1000 2/15 net 30" is printed on a bill, the buyer can take a 2% discount ($1000 x .02 = $20) and make a payment of $980 within 15 days or pay the whole $1000 in 30 days.

5 0
3 years ago
Read 2 more answers
Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at
sergeinik [125]

Answer:

Comer's tax liability for 2018 = $33300

Explanation:

Before determining Comer's tax liability for 2018, we need to understand what gross income is and what forms part of gross income. Gross income is total amount of income from various sources minus/plus and additions and deductions. Income from salary is earned in the ordinary course of work/business which is definitely part of gross income. Capital gain is refers to gain/profit/income from sale of capital assets such as property, shares, stocks, piece of land. Any gains and losses form part of gross income and capital losses are reported as deductions meant to reduce investors tax liability just as capital gains should be taxed.

Lets first calculate gross income and then apply tax rate to determine tax liability.

Gross income = salary + Short-term & long-term capital gains - short-term & long-term capital losses

GI = $64000 + $31000 + $9000+$15000 -$2000 -$6000

GI = $111000

Assuming the tax rate is 30%, the tax liability for the year is as follows:

Tax liability = $111000×30%

Tax liability = $33300

7 0
3 years ago
A child receives a dime for weeding dandelions from the yard. sometimes he gets paid after pulling as few as three, sometimes he
ddd [48]

Variable-ratio reinforcement, in which the rate of reward varies over time.

8 0
3 years ago
Other questions:
  • What is Constant Term? ​
    13·2 answers
  • 1. Characteristics of oligopoly An oligopolistic market structure is distinguished by several characteristics, one of which is m
    14·1 answer
  • Gunslinger Company is considering the purchase of pipe cutting equipment. Data on the equipment are as follows: Original Investm
    15·1 answer
  • If a firm has a limited capital budget and too many good capital projects to fund them all, it is said to be facing the problem
    8·1 answer
  • A _______ lease covers the landlord's expected increases in expenses by increasing the rent on an annual basis over the life of
    10·2 answers
  • Consider a $6500 piece of machinery, with a 5-year depreciable life and an estimated $1200 salvage value. The projected utilizat
    13·1 answer
  • How much do alcohol related crashes cost Florida every year
    7·2 answers
  • Max worked 48 hours last week. What is his gross pay for the week if his regular hourly pay is 13.50
    8·1 answer
  • Dow CEO Jim Fitterling mentions a(n) _____ in support of companies' efforts to remove plastic waste from the oceans.
    13·1 answer
  • Flexible Budgeting At the beginning of the period, the Fabricating Department budgeted direct labor of $72,000 and equipment dep
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!