Balance of payment data is used by various stakeholders, including society. What is your opinion regarding the need of preparing balance of payment? Critically analyze your statement. Do you agree that balance of payment is just one sided story of a transaction and it gives only cash position of a country by the year end? The BOP surplus or deficit positions have specific meanings. Critically analyze the BÓP positions with proper justification.

Balance of payment data is used by various stakeholders, including society. What is your opinion regarding the need of preparing balance of payment? Critically analyze your statement. Do you agree that balance of payment is just one sided story of a transaction and it gives only cash position of a country by the year end? The BOP surplus or deficit positions have specific meanings. Critically analyze the BÓP positions with proper justification.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter9: Forecasting Exchange Rates

Section: Chapter Questions

Problem 28QA

See similar textbooks

Similar questions

From the following, please identify the 2 statements that are true as well as the 2 statements that are false. A) The most common approach to translate budgets and compare a budget with actual performance uses the forecast rate. B) A major force leading to the convergence of accounting standards is the global separation of capital markets. C) For U.S. companies, foreign-currency-denominated receivables and payables give rise to exchange gains and losses only when the dollar weakens against the foreign currency D) According to the translation process in the United States, companies recast their financial statements consistent with U.S. GAAP, and then translate them into U.S. dollars
why a organisation should consider hedging net payables or net receivables with currency options rather than: forward contracts, and future contracts.
Discuss this statement : " Because each nation's balance of payments equals zero , it follows that there is actually no significance to a balance of payments deficit or surplus . " I need explanation...
what's the required condition for a country's Current Acoount Balance to improve after the devaluation of its currency. explain.
Describe the features of Bretton Woods System or pegged rate currency system Describe the impact to the worldwide financial system of the failure of Herstatt Bank.
The rate of interest charged on loans from a country perceived to have no risk of defaulting is called Group of answer choices the interest rate parity the MNC adjusted rate the risk free rate the weighted average cost of capital
A short-term financial decision based on an MNC management's expectation that the local foreign currency will appreciate may be A) increasing local customers' accounts receivable and increasing local notes payable. B) decreasing local notes receivable and decreasing accruals. C) increasing local inventories and increasing local notes payable. D) increasing local accounts receivable and decreasing local accounts payable.
Q2-5 In the monetary approach to the balance of payments (under flexible exchange rates) an increase in the proportion of income that people in country A wish to hold as money would, other things equal, lead to _______ in country A's demand for money and to ______ of A's currency in the foreign exchange markets. a. an increase / a depreciation b. an increase / an appreciation c. a decrease / a depreciation d. a decrease / an appreciation
The system of using a monetary unit, such as the US dollar, to value the transaction is known aswhich of the following?A. separate entity conceptB. monetary measurement conceptC. going concern assumptionD. time period assumption
Which of the following is a matured money market instrument widely used in the USA, Europe and Asia where both cash and securities are the motivators? a. Commercial Papers b. Treasury Bills c. Repurchase Agreements d. Certificate of Deposits
Below you can find the memoranda for the country called LALALA. All values are in millions of US Dollars. Current Account Balance (net) =? Financial Account Balance (net) = 850 Financial Derivatives (net) = 50 Capital Account Balance (net) =- 10 Statistical Discrepancy = - 80 Depending on the above information calculate the value for the current account balance. Do you think LALALA is suffering a current account deficit or enjoying a surplus? Explain shortly. [Hint Remember the balance of payments (BOP) is balanced by definition]
Monetary policy in Australia is implemented by the Reserve Bank, and currently is principally directed towards: A: affecting the level of short-term interest rates B: effecting a reduction in the current account deficit C: affecting the level of growth in the money supply