What is the financial account balance

Assignment Help Financial Management
Reference no: EM131302940

1. What are official reserve assets? How do central banks use official reserve assets?

2. If the U.S. current account deficit is $400 billion, and if the statistical discrepancy is zero, what is the financial account balance? Does this financial account balance represent a net capital outflow or a net capital inflow?

Reference no: EM131302940

Questions Cloud

Transactions recorded in the balance of payments accounts : Suppose that a U.S. firm buys 10 Volkswagen autos for $20,000 each, and the German company uses the money to buy a $200,000 U.S. Treasury bond at a Treasury auction.
The rest will be secured by a mortgage : Jack and Hope are thinking of purchasing a house. The house costs $320,000 and they have saved $80,000 as a down payment. The rest will be secured by a mortgage. Calculate the amount of the payments. Calculate the monthly payments if they are made at..
How did the culture in which the work was created : Choose a work from this week's module that illustrates a significant cultural influence on its creation and discuss its historical context. How did the culture in which the work was created influence the work? (What particular ideologies played a ..
Explain how your clip describes the economic concepts : For the second part, you will choose two economic concepts and explain how each applies to your particular media choice. This part must be in your own words- explain how your clip describes the economic concepts.
What is the financial account balance : What is the financial account balance? Does this financial account balance represent a net capital outflow or a net capital inflow?
Required by law to report to potential borrowers : Tai Credit Corp. wants to earn an effective annual return on its consumer loans of 14.2 percent per year. The bank uses daily compounding on its loans. What interest rate is the bank required by law to report to potential borrowers?
Demand for dollars rise when us interest rates rise : An investor who holds U.S. currency doesn't receive any interest, so why does the demand for dollars rise when U.S. interest rates rise?
Taxation law : Analyse and compare the decision of the High court in “FCT v Applegate (1979) 9 ATR  899” and “FCT v Jenkins (1982) 12 ATR 745”. Summarise your answer by critically discussing the cases.
Intend to hedge a floating rate payment : You intend to hedge a floating rate payment on a $50 Million notional with a reset date of 3/18/2015 and payment date of 6/20/2015. The interest rate of the payment will equal 3 month LIBOR as of 3/18/2015. You short 50 EDH5 contracts at 99.25. What ..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the profit margin

McCormac Co. wishes to maintain a growth rate of 8 percent a year, a debt-equity ratio of 0.51, and a dividend payout ratio of 56 percent. The ratio of total assets to sales is constant at 1.23. What is the profit margin?

  The annual total costs of post card inventory

Cheeseburger and Taco Company purchases 11,789 boxes of cheese each year. It costs $11 to place and ship each order and $9.61 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. What is t..

  What is the current share price

Bayou Okra Farms just paid a dividend of $2.65 on its stock. The growth rate in dividends is expected to be a constant 4.5% per year indefinitely. Investors require a return of 15% for the first 3 years, a return of 13% for the next 3 years and a ret..

  What is the market value of the bond

A 20-year bond pays 6% on a face value of $1,000. If similar bonds are currently yielding 4.5%, what is the market value of the bond? Use annual analysis

  Batch settlement number and scanning image number

The numbers on the bottom area of a check which shows the bank identification number is also known as a transit routing number. check imaging number. batch settlement number. scanning image number

  Calculate the variances and the standard deviations

The rate of return on Cherry Jalopies, Inc., stock over the last five years was 11 percent, 11 percent, -4 percent, 3 percent, and 7 percent. Over the same period, the return on Straw Construction Company’s stock was 16 percent, 16 percent, -5 percen..

  What is the price range of houses they should consider

The Johnsons have accumulated a nest egg of $15,000 that they intend to use as a down payment toward the purchase of a new house. Because their present gross income has placed them in a relatively high tax bracket, they have decided to invest a minim..

  Calculate the annual yield of six-month treasury bill

A three-month Treasury bill and a six-month bill both sell at a discount of 9%. Calculate the annual yield of three-month Treasury bill. Calculate the annual yield of six-month Treasury bill.

  What is the risk premium for stock

What is the risk premium for Litchfield Design stock if the stock has a beta of 1.28, the expected return on the market is 16.06 percent, the risk-free rate is 3.95 percent, and inflation is 2.29 percent?

  Should the firm purchase this production equipment

A company is considering the acquisition of production equipment which will reduce both labor and materials costs. The cost is $100,000 and it will be depreciated on a straight-line basis down to $0. Should the firm purchase this production equipment..

  What was the average real return on the stock

You've observed the following returns on SkyNet Data Corporation's stock over the past five years: 10 percent, -10 percent, 17 percent, 22 percent, and 10 percent. Suppose the average inflation rate over this period was 1.5 percent, and the average T..

  Determine key methods in which the budget may be optimized

From the scenario, analyze TFC’s cash budget to determine key methods in which the budget may be optimized (e.g., by renegotiating terms and conditions on some of its payables, etc.). If you believe that there is room for improvement, recommend key s..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd