Answer:
STOCKS
Explanation:
US government bond is a government security, therefore the government print more money to pay those who invest in it.
In addition bondholders are creditors of a corporation.
Stockholders, are part owners of a company. In case of bankruptcy, bondholders are given priority.
Savings accounts are protected by the Federal Deposit Insurance Corporation (FDIC) provisions.
Money market accounts are a safe investment because they are insured by the FDIC.
Therefore the investment option that has the highest risk is stocks.
Answer:
a. Meitneria will import textiles from Seaboria and export heavy machinery to it.
Explanation:
The Heckscher-Ohlin theory states that a country has to export what it can produce efficiently according to the factors of production that the country has and import the products that the country is not able to manufacture efficiently. According to this, the answer is that in this situation, according to the Heckscher-Ohlin theory Meitneria will import textiles from Seaboria and export heavy machinery to it as Meitneria doesn't produce textiles which forces the country to import them and they specialize on heavy machinery which allows them to export it to Seaboria as this country doesn't have the technology to manufacture it.
Answer:
The parties should use the one-year exchange rate to disclosure the contract in their books.
Explanation:
The spot rate is used when the exchange of pounds for dollars occurs immediately. For the current scenario, this rate is not appropriate.
The parties should use the one-year exchange rate to disclosure the contract in their books.
At the time of payment, they will use the spot rate of that date and made the adjustment needed.
The British firm should purchase 1 million forward to seal the exchange rate, and not incur currency risk.
Answer:
7%
Explanation:
Base on the scenario been described in the question, we can use the following method to solve the given problem
The annual stated interest rate on the bonds is gotten by
$7,000/$100,000
= 7%. As our answer.
