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1. What is a balance of payments disequilibrium? Can a country run a balance of payments deficit indefinitely? How would a balance of payments disequilibrium
1. What is a balance of payments disequilibrium? Can a country run a balance of payments deficit indefinitely? How would a balance of payments disequilibrium eventually be corrected under a gold standard? How would a balance of payments disequilibrium eventually be corrected under flexible exchange rates? 2. Assume U.S. corporation ABC needs to arrange to have 100,000 in 90 days. Discuss the alternatives available to the corporation in meeting this obligation. What factors are important in determining which strategy is best? 3. Calculate the per annum premium (discount) of a 3-month forward contract on the Indonesia Rupiah if the spot rate is 8650 Rupiah/S, the 3-month forward rate is 8695 Rupiah $. and the 1- year forward rate is 9235 Rupiah/S. Show your work
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