Get 2 days of premium access
Study Guides (370,000)
US (220,000)
CU-Boulder (1,000)
ECON (60)
Midterm

ECON 4423 Study Guide - Midterm Guide: Mutual Fund, Budget Constraint, IsoniazidExam


Department
Economics
Course Code
ECON 4423
Professor
Keith E Maskus
Study Guide
Midterm

This preview shows half of the first page. to view the full 3 pages of the document.
/
Name
____
_
____
_
______
_
Economics
4423
International
Finance
Spring
2018
Midterm
Examination
Two
I. ( 12 Points ) Briefly define
any
two
(2)
of th e following concepts and explain their imp
or
tance for the study
of
inh:rnational finance.
( r~,£
"!_
II
--
!:£-
fro-"~
,u
:
t:O
v--
a.
b,ternal
wealth
b.
J-
Curve
, . l.u,;i~ Paradox
(26 Point~) Consider the
fo
ll
owing primary transactions and their a ment items and cla
ss
if
y them as credits or
lkb1 ts
in
the current account (CA) or financial account (FA)
fo
f\ustrali - Australia
's
curren
cy
is the
Australian do
ll
ar
(A$)
.
In
ea
ch case enter the relevant amount
int
1e debit or credit line.
a.
b.
Australian farmers sell
A$
30 milli
on
in wheat to C hina and are paid with ch
ec
ks drawn on a Hong Kong
bank .
Debit Credit CA
or
FA
Wheat
,xp
urts
--,--,--
-A $3o
""
-
.c,c.
_
f\.
_ _ _
Pa
y,m:nt -
A$30
...,
,
_____
-,-
.L
E~t-
__
_ _
,\u
stralian uni vers
it
ie
s hin: American professors to teach courses in a
pa11i
c
ul
ar semester and pay a total
sa
la
ry to
tho:m
of A$7 million. payi ng them with shares
in
an Australian mutual fund .
Debit
Cr
edit CA o r
FA
Hiring prulcssors __Af_'J~
--,--,--:----
---'-
C.LA
_._
__
' "
C.
v.•
,e
..
1
~:~/
c.
l'ay
nH:nt
with mutual fund
____
_
_&
?
.--
· _ f
{I
,\ K
or
ean
hro:ad
manufac
turo:r
buys farm s
in
Australia
for
,
\$
25 million. pay
in
g with the proceeds o
fa
loan
it
arranged in a Japanese bank.
Dcbit Credit CA or
FA
j
,,(P~
(2e...-i1'f111.-iti-'>
Farms
~o
ld
Payment
fr
om 10,
111
,A
f )
.t;
/,'
II
flt
~,.ls.~
bv.y;
..
,
(l~set
s
rion
FA
.:
OS8t
OS8
-
t~
....
~c."t.
'
•.,...
i~ o.~~ei
~
.
f(l.>'~"-r
f
f
i~c,!a.\
f~
..
14{
-fu,t-t
ery
p---t
c.Jic,..Sc
S
You're Reading a Preview

Unlock to view full version