Suppose that a Japanese investor buys a Canadian stock with cash. For Canada, this counts as a:   a. current account credit, current account debit. b. financial account debit, financial account credit. c. capital account debit, capital account credit. d. financial account credit, financial account credit.

Given the following data: E₁ =¥100 = $1.00 Et+1 = ¥100 = $1.00 (one year later} iuaoan = 15% annually ¡u.s. = 10% annually Calculate the future value of a $1,000 investment. If the $1000 is invested in the U.S., the future value is $ (Round your response to two decimal places.)

1. How is international financial management different from domestic financial management? 2. What are multinational corporations (MNCs) and what economic roles do they play?

13. Study Questions #13. Ch 11. Suppose the interest rate (on an annual basis) on three-month Treasury bills is 10% in London and 6% in New York, and the spot rate of the pound is $2.03. How can a U.S. investor profit from uncovered interest arbitrage? O Purchase pounds at $2.03 in New York to buy U.K. Treasury bills in London, thus earning 4% per year. O Purchase pounds at $2.03 in New York to buy U.K. Treasury bills in London, thus earning 3% per year. O Purchase pounds at $2.03 in New York and sell them in the U.K., thus earning 4%. O Purchase pounds at $2.03 in New York to buy U.K. Treasury bills in London, thus earning 3.05% per year.

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A. Canada produces natural resources (coal, natural gas, and others), the demand for which has increased rapidly as China and other emerging economies expand. i. Explain how growth in the demand for Canada's natural resources would affect the demand for Canadian dollars in the foreign exchange market. Explain how the supply of Canadian dollars would change. ii. iii. Explain how the value of the Canadian dollar would change. iv. Illustrate your answer with a graphical analysis. 1

When the U.S. real interest rate rises  _______ . Group of answer choices U.S. dollar assets earn a higher return relative to foreign assets imports will decrease makes U.S. exports cheaper in foreign currencies makes imports more expensive in U.S. dollars

6. Debtors and creditors - Net international investment position Suppose that at the end of 2014, the value of U.S.-owned assets abroad is $15,888 billion, and the value of foreign-owned assets in the United States (which are U.S. liabilities) is $16,953 billion. The net international investment position of the United States in 2014 is $ experiencing debt.) billion. (Hint: Be sure to include a negative sign if the U.S. is Suppose that in 2015, the United States runs a current account surplus of $514 billion. If other factors remained constant, the net international investment position of the United States would during 2015 to $ billion. Suppose that during 2015, the U.S. net external debt decreases by $393 billion from the previous year. Given the current account balance, which of the following can explain this outcome? Check all that apply. U.S.-owned assets held abroad depreciated (lost value). The U.S. current account deficit was greater than the country's net borrowing.…

9. Consider savings-investment diagrams assuming that there are two countries in the world, A and B. Initially, both countries are identical, i.e., they have the same supply of savings and demand for investment. Therefore, even as open economies, they both have balanced current accounts, i.e., neither has a deficit or surplus. Now assume that in country A, the government increases the budget deficit, shifting the supply of savings to the left. If all other curves (A s investment demand, B s savings supply, B s investment demand) stay the same, what will the effect of the increase in A's budget deficit? a. Country B will have a CA surplus. b. Country A will have a KFA deficit. c. Investment in country B will increase. d. The world real interest rate will fall.