Under dollarization, a country
A) backs its currency 100 percent with foreign reserves.
B) earns seigniorage because it no longer bears the cost of issuing its own currency.
C) abandons its own currency and adopts the money of another country.
D) must worry about a speculative attack on its currency.
C
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Corporate policies designed to attract, train, and evaluate competent employees are considered to be control activities in the COSO framework for internal controls
a. True b. False Indicate whether the statement is true or false
Repeat the Spuds and Suds Income Statement example from Chapter 7 with the following assumptions: price per unit and fixed costs are expected to increase by an average annual rate of inflation of 2%. Also assume that variable costs as a percent of sales will remain constant at 65%. Finally, suppose that Spuds and Suds is a firm in the early stage of business, and that unit sales are projected to grow at a rate of 20%, 15%, 10% and 5% for 2018-2021 respectively.
a) Create an income statement using the assumptions explained above. b) Calculate the operating break-even point in both units and dollars. c) How many units would Spuds and Suds need to sell in order to achieve earnings, before interest and taxes of $900,000? d) Calculate the degree of operating, financial, and combined leverage for each year. e) Create a chart that shows how the various leverage measures have changed over this five-year period.
Answer the following statements true (T) or false (F)
In portfolio theory, systematic risk is defined as the variance of expected investment returns.
Walter worked nights as a clerk in a fast-food store. On his last work shift, Walter's boss told him, "I'm really grateful for the year that you have worked here. I am going to give you a bonus of $1,000 in your last paycheck." When Walter got his last paycheck, there was no bonus. If Walter sues, the likely result will be:
a. Walter will win, as the promise is enforceable. b. Walter will lose, as he gave no consideration. c. Walter will lose unless the promise was in writing. d. Walter will win, as no consideration is required to modify an employment contract.