Reference no: EM131318768
These are sample midterm questions they could really help me with my upcoming midterm.
1. - What are the uses of Balance of Payments data? Describe the Current and Capital accounts of the Balance of Payments. Is the trade balance sensitive to exchange rates? Is the current account useful for other macroeconomic purposes?
2. – How does the gold standard adjust trade deficits and surpluses? Give an example detailing all the steps that ensue after a trade deficit is incurred.
3. - What are the current advantages to member countries of the European Union? What are the disadvantages? What conditions are necessary to have a successful monetary and economic union?
5. – Given an initial $1.00 = 2DM fixed exchange rate, a price of $40,000 for U.S. cars, and DM 80,000 for German cars, show how a change in the exchange rate would help German car exports and hurt U.S. car exports. Can you relate this example to the dollar revaluation after World War II?
6. – Compare fixed and floating rates. What are managed rates? Which of these is most quickly affected by PPPT (inflation)?
7. – Discuss interest rate parity by describing the process initiated by arbitrageurs when it is violated – that is, what is involved in restoring equilibrium?
8. - What is the forward market? Central Bank intervention? Cross Exchange Rates? Forward Premiums?
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Interested in obtaining a home equity loan
: You are interested in obtaining a home equity loan. Your condo was purchased five years ago for $125,000 and now has a market value of $156,000. Originally, you paid $25,000 down on the condo and took out a $100,000 mortgage. What will your credit li..
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Determine the total interest and fees you will be charged
: You need to borrow $1,000 for the next year. Bank A can give you the loan at 9 percent. Bank B can give the loan at 7 percent, but charges a $50 loan origination fee. Bank C will give loan at 6 percent with a $25 loan origination fee. Determine the t..
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How much interest will you pay over the life of each loan
: You are interested in purchasing a car. After making the down payment, you will finance $15,500. You are offered two maturities. On a four-year loan, you will pay $371.17 per month. On a five-year loan, your monthly payments will be $306.99. How much..
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Assume that sales-operating costs-total assets-tax rate
: Last year Hamdi Corp. had sales of $500,000, operating costs of $450,000, and year-end assets of $355,000. The debt-to-total-assets ratio was 17%, the interest rate on the debt was 7.5%, and the firm's tax rate was 35%. The new CFO wants to see how t..
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What are the uses of balance of payments data
: What are the uses of Balance of Payments data? Describe the Current and Capital accounts of the Balance of Payments. Is the trade balance sensitive to exchange rates? Is the current account useful for other macroeconomic purposes? How does the gold s..
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Construct the account with the interest rate
: In the add Interest method, decrement the count of months. If the count is positive during a withdrawal, charge the withdrawal penalty.
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Which classes are now abstract and which are concrete
: Write a static method void test(Bank Account account) that makes five transactions and then calls end Of Month. Test it with instances of all concrete account classes.
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Make a class manager inherit from employee
: Supply appropriate to String methods for all classes. Supply a test program that tests these classes and methods.
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Implement a subclass square that extends the rectangle class
: Also supply a method get Area that computes and returns the area of the square. Write a sample program that asks for the center and side length, then prints out the square (using the to String method that you inherit from Rectangle) and the area o..
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