The domestic currency value of the return on a foreign investment when the foreign currency proceeds are sold in the forward market, is defined to be the
A) covered return.
B) uncovered return.
C) forward return.
D) Both B and C.
A
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A stockholder ________ an owner of the firm, and a bondholder ________ an owner of the firm
A) might be; is not B) is; is not C) is not; is D) is not; is not E) is; is
Suppose the exchange rate for the U.S. dollar falls. This could be caused by
A) a decrease in U.S. import demand. B) an increase in the world demand for U.S. exports. C) an increase in the U.S. interest rate differential. D) a fall in the expected future exchange rate.
A movie theatre raises its admission prices by 10%, which results in a 10% reduction in the quantity of tickets demanded. The demand curve facing this firm is: a. elastic
b. inelastic. c. unit elastic. d. unit inelastic.
How do the concepts of market failure and failure of market outcome relate to the concept of Pareto optimality?
A. Market failure is judged by the criteria of Pareto optimality; failure of market outcome rejects Pareto optimality as the sole criterion. B. Failure of market outcome is judged by the criteria of Pareto optimality; market failure rejects Pareto optimality as the sole criterion. C. Both market failure and failure of market outcome reject the criteria of Pareto optimality for another criterion. D. Both market failure and failure of market outcome are judged by the criteria of Pareto optimality.