1.Suppose that a US investor buys a foreign stock denominated in EUR. The stock goes up 4%...
Question:
1.Suppose that a US investor buys a foreign stock denominated in EUR. The stock goes up 4% in price. Over the same time period, the EUR appreciates 8% What is the US investor's exact USD- denominated percentage rate of retune?
2.The general rule of thumb for speculating on currency moves is to borrow in the currency you forecast to depreciate and invest the currency you forecast appreciate.?
a)True
b)false
3.all of the following are key components of the capital account except.?
a)Other capital investment
b)Portfolio investment
c)Lender principal investment
d)Direct foreign investment
4.The current account is divided into four finer categories:
a)Merchandise trade, services, factor income, and direct investment
b)Merchandise trade, services, portfolio investment, and unilateral transfers
c)Merchandise trade, services, factor income, and statistical discrepancy
d)Merchandise trade, services, factor income, and unilateral transfers
5.Country A is excellent in producing cars and computers. Country B is good at producing cars and fair in producing computers. Country B is said to have a relative comparative advantage in?
a)Neither cars nor computers
b)Computers
c)Cars