1.If a firm expects a blockage of funds implemented by a host government to be temporary,...

1.If a firm expects a blockage of funds implemented by a host government to be temporary, which of the following can be considered as a forced reinvestment?

Select one:

a. a lumber cutting company decides to invest in a paper mill with blocked funds

b. None

c. An automobile company reinvests its funds by buying businesses who supply it with parts and showrooms.

d. Investing in local short-term debt instruments and short-term loans

2.There are various determinants of the foreign exchange rate. Which of the approaches postulates that the FX rate is determined by demand and supply of different types of financial assets?

Select one:

a. balance of payments

b. asset market

c. law of one price

d. monetary

Expert Solution

Rahul Sunny answered 7 months ago

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