Answer: Option a is correct. Appreciation, reduction
When local currency appreciates its value increases, so we needs to pay less sum of amount compared to what we were paying before, inflows decreases due to conversion or exchange rate
in both cash intlows and outflows. in general, _in the firm's local currency causes a(n) a....
an MNC could the currency forward. Forward contracts can be used to eliminate transaction exposure. For example, to hedge a a. [Receivable; sell] and [Payable; sell] O b. Receivable; sell O c. Payable; sell d. Receivable; buy e. [Receivable; buy] and [Payable; sell] Hide Feedback Incorrect
Which one of the following statements is the MOST accurate? (a) A permanent increase in a country’s money supply causes a proportional long-run depreciation of its currency against foreign currencies. (b) A temporary increase in a country’s money supply causes a proportional long-run depreciation of its currency against foreign currencies. (c) A permanent increase in a country’s money supply causes a proportional long-run appreciation of its currency against foreign currencies. (d) A permanent increase in a country’s money supply causes...
2. An appreciation of a nation's currency can be the result of which of the folowing? a. an increase in net exports b. a decrease in net exports c. a fal in national saving d. a decrease in domestic demand for investment 3. The government n an open economy increases spending. As a resut, the supply of loanable funds from national saving_ leading to an). . net capital outflow and a real exchange rate / a. fals, reduced, appreciation b....
Uh tis course Anigsment Soe 40 Problem 3.12 Check My Work (2 remaining) Click here to read the eBook: Statement of Cash Flows STATEMENT OF CASH FLOWS Hampton Industries had $37,000 in cash at year-end 2015 and $17,000 in cash at activities totaled+$180,000. Round your answers to the nearest dollar, if necessary a. What was the cash flow from operating activities? Enter cash outflows with a minus sign. year-end 2016. The firm invested n property, plant, and equipment totaling $280,003...
Any event that causes New Zealanders to buy more AUD foreign goods shifts the local foreign currency _______ curve to the _______ . A. Demand, right B. Demand, far right C. Supply, right D. Supply, left E. Supply, far left please explain the reasons
Check My Work Which of the following is not true? a. Economic exposure is the degree to which a firm's present value of future cash flows can be influenced by exchange rate fluctuations. o b. Translation exposure is the exposure of an MNC's consolidated financial statements to exchange rate fluctuations. X O c. Economic exposure includes transaction exposure. O d. Transaction exposure is the degree to which the value of future cash transactions can be affected by exchange rate fluctuations....
answer both please! thank you Which of the following statements regarding investment objectives is incorrect? a. The goals must be realistic in terms of economic conditions. b. The goals of investment objectives can be quickly met. c. The goals must be tailored to the individual. d. The goals must be oriented toward the future. • e. The goals must be specific and measurable. ex Hide Feedback Incorreet Check My Work (1 remaining) On January 1, 2018, Brad came up with...
1. When the government increases spending by issuing more bonds, it causes: a) nations currency to appreciate b)exports increase c)interest rates decrease d)demand for loanable funds decrease e)decreases merchandise trade deficit 2. When the Fed decreases money supply to combat inflation, it cuases: a)the price of the U.S. dollar to decrease b) capital to flow out of the US c)an increase in the merchandise trade deficit d)an increase in private spending e) a decrease in the interest rates 3. Which...
A firm's cash flows from investing activities include: A) Cash received from the sale of a plant asset B) Cash paid as dividends C) Cash received from the rendering of services to customers D) Cash paid to retire bonds payable 3. A firm's cash flow from financing activities includes: A) Cash paid to reacquire treasury stock B) Cash paid for merchandise purchased C) Cash received from sale of investment in bonds D) Cash received as interest income 4 Nacho Company...
1) The price of one currency in terms of another is called A) the exchange rate. B) purchasing power parity. C) the terms of trade. D) a currency band. 2) The three policies which cannot be maintained simultaneously by a nation (sometimes referred to as the "trilemma") do NOT include A) independent control of the money supply. B) independent control of fiscal policy. C) free flow of capital. D) fixed exchange rates 3) The foreign exchange rate refers to A) the rate of change in...