Which of the following parity conditions is (are) correct?
A) The purchasing-power parity theory states that in the long run exchange rate changes tend to
reflect international differences in inflation rates.
B) The interest-rate parity theory states that the forward premium/discount should be equal and
opposite in size to the national interest rate differential.
C) The international Fisher effect states that national interest rate differentials are the result of
inflation differentials.
D) All of the above are correct.
D
You might also like to view...
Yokio, Ltd., and Zeno, S.A., transact an international sale of goods. At the request of these parties, a court in Portugal resolves a dispute between them. A U.S. court will most likely honor the judgment
a. if it is consistent with U.S. laws and public policy. b. if it is consistent with Portuguese laws and public policy. c. if it does not benefit the U.S. to deny it. d. under no circumstances.
All matrices have the same number of rows as columns
Indicate whether the statement is true or false
Comparative advantage shifts over time as less developed countries become more developed and realize their latent opportunities
Indicate whether the statement is true or false.
Following are selected accounts for Green Corporation and Vega Company as of December 31, 2020. Several of Green's accounts have been omitted. Green VegaRevenues$900,000 $500,000 Cost of goods sold 360,000 200,000 Depreciation expense 140,000 40,000 Other expenses 100,000 60,000 Equity in Vega's income ? Retained earnings, 1/1/2020 1,350,000 1,200,000 Dividends 195,000 80,000 Current assets 300,000 1,380,000 Land 450,000 180,000 Building (net) 750,000 280,000 Equipment (net) 300,000 500,000 Liabilities 600,000 620,000 Common stock 450,000 80,000 Additional paid-in capital 75,000 320,000 ??Green acquired 100% of Vega on January 1,2016, by issuing 10,500 shares of its $10 par value common
stock with a fair value of $95 per share. On January 1, 2016, Vega's land was undervalued by $40,000, its buildings were overvalued by $30,000, and equipment was undervalued by $80,000. The buildings have a 20-year life and the equipment has a 10-year life. $50,000 was attributed to an unrecorded trademark with a 16-year remaining life. There was no goodwill associated with this investment.?Compute the December 31, 2020, consolidated additional paid-in capital. A. $1,102,500. B. $75,000. C. $525,000. D. $210,000. E. $942,500.