When someone says that they're "buying American dollars" (USD), what type of asset are they probably...

When someone says that they're "buying American dollars" (USD), what type of asset are they probably buying? They're probably buying:

(a) Short term debt denominated in USD, for example lending to a US bank as a USD deposit.

(b) Long term debt denominated in USD, for example lending to a US company by buying their USD bonds.

(d) Real estate denominated in USD, for example buying an apartment in Chicago.

(e) Commodities with USD, for example buying gold, wheat, or coal.

Solutions

Expert Solution

Option A is correct

Short term debt denominated in USD, for example lending to a US bank as a USD deposit.

Buying American Dollars, mean buying short term assets denominated in USD, like T bonds etc

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

What does it mean when someone says "no gene is an island"?

What does Gladwell mean when he says someone is a Connector? What characteristics make someone a...

What does Gladwell mean when he says someone is a Connector? What characteristics make someone a Connector? What does Gladwell mean when he says someone is a Maven? What characteristics make someone a Maven? What does Gladwell mean when he says someone is a Salesperson? What characteristics make someone a Salesperson? Why are these three types of individuals so critical to the development of social epidemics?

When acquiring an asset, what are the advantages of renting vs. buying/owning the asset? If a...

When acquiring an asset, what are the advantages of renting vs. buying/owning the asset? If a company decides to buy an asset, what are the advantages and disadvantages of paying cash versus financing with debt?

What type of asset depreciates

_____ 9. An American buying stock in a foreign company would describe would type of investment....

_____ 9. An American buying stock in a foreign company would describe would type of investment. Foreign liquid investment Foreign direct investment Portfolio investment Diversification investment _____ 10. Capital inflow has the following effects on the economy: Decreases net capital outflow which leads to a decrease in real interest rates Increases net capital outflow which leads to an increase in real interest rates Causes the domestic currency to appreciate which leads to increase in exports and a decrease in imports...

When someone owns an asset (such as a share of stock) that rises in value, he...

When someone owns an asset (such as a share of stock) that rises in value, he has an “accrued” capital gain. If he sells the asset, he “realizes” the gains that have previously accrued. Under the U.S. income tax, realized capital gains are taxed, but accrued gains are not. The higher the tax on capital gains, the ---------------------------- likely the investor would sell the investment. Cuts in capital gains tax rates can raise tax revenue if the lower tax rate...

Can someone explain to me what the KKLT paper says, and what has and hasn't it...

Can someone explain to me what the KKLT paper says, and what has and hasn't it achieved regarding the ability to construct solutions with a small positive or negative cosmological constant in string theory?

Can someone please explain what current asset to total asset ratio means? And what it the...

Can someone please explain what current asset to total asset ratio means? And what it the advantage if one company has a higher ratio than the other one?

Question 6 What type of depreciation occurs when an asset can no longer provide services at...

Question 6 What type of depreciation occurs when an asset can no longer provide services at the level originally intended? Select one: a.Physical depreciation b.Market depreciation c.Cost depreciation d.Functional depreciation Question 7 Which method of depreciation considers residual value in computing the normal periodic depreciation? Select one: a. Straight-line b. MACRS c. Declining balance d. All the above use residual value Question 8 The accounting term depreciation measures __________. Select one: a. An assets market value decline b. The amount...

What is an impairment of a fixed asset? When is an asset impaired? How is the...

What is an impairment of a fixed asset? When is an asset impaired? How is the impairment expense calculated?

Subjects