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
Machinery was purchased for $85,000. Freight charges amounted to $3,500 and there was a cost of $10,000 for building a foundatio
tia_tia [17]

Answer:

b. $16,700

Explanation:

The computation of the depreciation expense under the straight-line method is shown below:

= (Original cost - residual value) ÷ (useful life)

= ($98,500 - $15,000) ÷ (5 years)

= ($83,500) ÷ (5 years)  

= $16,700

The original cost is computed below:

= Original cost  of machinery + freight charges + cost of building a foundation and  installing the machinery

= $85,000 + $3,500 + $10,000

= $98,500

In this method, the depreciation is same for all the remaining useful life

7 0
2 years ago
Due to a recession in the United States and abroad, ski resorts have suffered from a lack of guests during the peak season. Thes
BlackZzzverrR [31]

Answer:

D) economic.

Explanation:

These are seen to be factors which play vital roles in bringing/affects the competitiveness of the environment of operation of a said firm.

These forces in a business are said to primarily affect the distribution of production activities across the globe and also within a smaller region. These effects of economic forces are easily been felt by the mass/population around the region where these forces are present and also where these enterprises are been sited/located.

Factors ranging from interest rate, employment, inflation rate, government fiscal and monetary policy are generally known to make up these factors been talked about.

5 0
3 years ago
Why is the separating of recordkeeping from the custody of assets a limitation of an internal control system?
yanalaym [24]

The separating of recordkeeping from the custody of assets a limitation of an internal control system because:

  • In example above, fraud could occur only if the two employees collude (agree to work together to commit fraud)
  • Employee maintaining accounting records has no incentive to falsify records.
  • Employee controlling asset will know if another person is maintaining records or not.
  • The employee who controls/has access to an asset should not maintain that asset's accounting records.
<h3>What is meant by Internal Control?</h3>
  • Internal controls are the mechanisms, rules, and procedures implemented by a corporation to ensure the integrity of financial and accounting information, promote accountability, and stop fraud.
  • Internal controls can help improve operational efficiency by improving the accuracy and timeliness of financial reporting, besides complying with laws and regulations and preventing employees from stealing assets or committing fraud.

To learn more about asset's accounting records: brainly.com/question/24012821

#SPJ4

6 0
1 year ago
Madison Company issued an interest-bearing note payable with a face amount of $10,800 and a stated interest rate of 8% to the Me
Aleks [24]

Answer:

$360

Explanation:

Interest Expense associated with the loan is the only operating cash flow. We need to calculate the interest expense first

As the note is issued on August 1, year 1, only  5 months has been passed on December 31, year 1, So we calculate the interest expense for only 5 months.

Interest Expense = Value of Note x Stated Interest rate x 5/12 = $10,800 x 8% x 5/12 = $360

It is assumed that the interest is paid on December 31, year 1.

4 0
3 years ago
Assume that Selling Division and Buying Division are both owned by Overall Corporation. Selling Division sells a product that is
Mariana [72]

Answer:

80

Explanation:

6 0
2 years ago
Other questions:
  • What new factor is transforming the promotion, production, presentation, and marketing of musical events in the twenty-first cen
    9·1 answer
  • The Deposit must be delivered by Buyer within ____________ of notice of acceptance of the offer.
    7·1 answer
  • Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicat
    8·1 answer
  • You invested $1,500,000 with a market-neutral hedge fund manager. The fee structure is 2/20, and the fund has a high-water-mark
    13·1 answer
  • Which explains a way the U.S. government has created incentives for people to save?
    10·1 answer
  • The lakeshore hotel's guest-days of occupancy and custodial supplies expense over the last seven months were: month guest-day of
    12·1 answer
  • Diversification is most effective when security returns are _________. a. high b. negatively correlated c. positively correlated
    7·1 answer
  • Consider a firm that operates in a perfectly competitive market. Currently the firm is producing 50 units of output and at that
    13·1 answer
  • Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales:
    12·1 answer
  • Previous
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!