We discussed in class about the recent trend of the valuation of major currencies including U.S. dollar. Especially the article from The Economist, “The fate of the dollar will shape financial markets in 2019” presented some ideas on the causes of the recent dollar appreciation and also on some scenarios of possible trend of major currency values in near future. a) (5 points) Explain the possible economic reasons why U.S. dollar appreciated against other major currencies including pound sterling, Euro and Japanese yen in 2018. b) (10 points) The author of the article presents two possible scenarios of dollar depreciation path over the next year or so, depending on the dynamics of three factors – i) Fed’s decision on interest rate, ii) trade dispute between U.S. and China, and iii) Euro-zone economy. Present your thoughts on the currency valuation change (i.e., whether will appreciate or depreciate) and its pace of the relevant economies (i.e., U.S. China, Europe, etc.) in light of those three factors.

Suppose Canada can produce 20 units of Oil and 0 units of potatoes if it chooses to only produce Oil. Otherwise, Canada can produce 50 potatoes and 0 units of oil if it only chooses to produce potatoes. The United States on the other hand can produce 25 units of oil (and 0 units of potatoes) if it choose to produce only oil and 100 units of potatoes and 0 units of oil if it chooses to produce only potatoes.

A.) What is the opportunity cost of 1 potato for the U.S.? For Canada?

B.) What is the opportunity cost of 1 oil for the U.S.? For Canada?

C.) Who has the absolute advantage in the production of Oil? Potatoes?

D.) Who has the comparative advantage in the production of Oil? Potatoes?

E.) Suppose the U.S. has decided to be self sufficient and is producing 10 units of oil and 40 units of potatoes. Is there anyway that the U.S. increase its consumption of goods outside its production possibilities frontier (for example, consume more potatoes without changing the consumption of oil)?

1. For all U.S. students nationally who take the SAT, SAT Math scores are normally distributed with an average score of 500 for all U.S. students. A random sample of 100 students entering Whitmer College had an average SAT Math (SAT-M) score of 475 and a sample standard deviation of 120. The sample data can be used to test the claim that the mean SAT-M score of all Whitmer College students is different than the national mean SAT-M score. Based on the given information and using the appropriate formula, calculate the test statistic for this hypothesis test. Round your answer to two decimal places. Enter the numeric value of the test statistic in the space below:

2. A survey administered to a random sample of 400 U.S. college students found that 40 out of the 400 students surveyed were a member of a sorority or a fraternity. Compute a 99% confidence interval for the proportion of U.S. college students who are a member of a sorority or a fraternity. In the blank below, enter the upper bound of the 99% confidence interval for p. For example, if your confidence interval is (0.115, 0.276), the upper bound would be 0.276. Provide your answer as a decimal rounded to three decimal places.

3. A survey administered to a random sample of 400 U.S. college students found that 40 out of the 400 students surveyed were a member of a sorority or a fraternity. Compute a 90% confidence interval for the proportion of U.S. college students who are a member of a sorority or a fraternity. In the blank below, enter the upper bound of the 90% confidence interval for p. For example, if your confidence interval is (0.115, 0.276), the upper bound would be 0.276. Provide your answer as a decimal rounded to three decimal places.

Question Set 2: Growth Rates

The data in the table below comes from FRED® Economic Data, a database compiled at the Federal Reserve Bank of St. Louis. The data represents annual nominal GDP for the United States from 2011-2016. The data for nominal GDP is Gross Domestic Product, Billions of Dollars, Annual, Not Seasonally Adjusted. The data for the GDP Implicit Price Deflator is annually (not seasonally) adjusted, with a base year of 2010. The U.S. population data comes from Worldometers.[1] The U.S. annual population growth rate comes from the U.S. Census Bureau.

Use the data in the table above to calculate U.S. economic growth rates for the following years:

2016

2014

2012

Question Set 3: Rule of 70

The following table details the growth rate in RGDP per capita for the countries listed from 1975 to 2009.

Taking the information in the table into consideration, answer the following question:

If each country continues to grow at the rate it grew from 1975-2009, how long would it take RGDP per capita to double in each country?

[1] Worldometers United States Population Website

Are U-Albany students more likely to approve gun control than adults in the U.S.? According to a research report, on a scale from 1 to 10, the mean approval of gun control in the U.S. is 7.8. The mean approval of gun control in a random sample of 26 U-Albany students is 8.3, with the standard deviation of 2.2. Use α = 0.01 for the hypothesis testing. Questions 28 to 32 are based on this example.
28. What would be the H0 for the example?
A. U-Albany students are equally likely to approve gun control than adults in the U.S.
B. The likelihood of approving gun control among U-Albany students is different from that of the U.S. adults.
C. There is no difference between the 26 U-Albany students and all U.S. adults in terms of their attitudes toward gun control.
D. U-Albany students are less likely to approve gun control than adults in the U.S.

29. What would be the t critical value(s)?

30. What’s the standard error based on the sample information?

31. What is the t obtained value?

32. What conclusion can we make for this example?
A. We cannot reject the null hypothesis that the mean approval of gun control among the 26 U-Albany students is 8.3.
B. There is no enough evidence to reject the null hypothesis that the mean approval of gun control among U-Albany students is 8.3.
C. We cannot reject the null hypothesis that the mean approval of gun control among all U-Albany students is 7.8.
D. We can reject H0 and accept H1 that the mean approval of gun control among all U-Albany students is larger than 7.8.

On June 15, 2018, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington, D.C., for $310 million. The expected completion date is April 1, 2020, just in time for the 2020 baseball season. Costs incurred and estimated costs to complete at year-end for the life of the contract are as follows ($ in millions):

Required:
1. Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion.
2. Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming this project does not qualify for revenue recognition over time.
3. Suppose the estimated costs to complete at the end of 2019 are $120 million instead of $30 million. Compute the amount of revenue and gross profit or loss to be recognized in 2019 using the percentage of completion method.

• Required 1
• Required 2
• Required 3

Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming Sanderson recognizes revenue over time according to percentage of completion. (Enter your answers in millions. Loss amounts should be indicated with a minus sign. Use percentages as calculated and rounded in the table below to arrive at your final answer.)

Compute the revenue and gross profit will Sanderson report in its 2018, 2019, and 2020 income statements related to this contract assuming this project does not qualify for revenue recognition over time. (Enter your answers in millions. Loss amounts should be indicated with a minus sign.)

Your friend, Jane Lee, recently won the Lotto Max and is planning to sell her business and move to England. Jane owns the Vancouver Running Centre Inc. (Centre) that offers training and running clinics. She has provided you with the trial balance for the year ended October 31, 2018 (the company’s year-end).

Vancouver Running Centre Inc.

Unadjusted Trial Balance

October 31, 2020

Required:

She has asked you to review the trial balance and the additional information and prepare any adjusting journal entries you believe are necessary to ensure the accounts are complete and accurate in accordance with Generally Accepted Accounting Principles. Place your responses together with supporting calculations in the table provided. Explanations are not required.

1) The computer equipment is in excellent shape. It was purchased on July 1, 2019 and is expected to have a useful life of 4 years at which time it is expected to be sold for $4,000.

2) On February 1, 2020, Centre received and recorded in Revenue Earned a $20,000 cash advance from the Richmond School Board. The payment covers marathon training for the eight-month period starting July 1, 2020.

3) Each of Centre’s employees is paid $1,500 every two weeks – i.e.10 days of work. The six employees did not receive a pay cheque for the last seven working days of October 2020, as the bookkeeper was ill. The amounts were both recorded and paid upon her return on November 4, 2020.

4. Centre’s sales invoices for the last two weeks of October 2020 have not been prepared nor recorded. You estimate that $14,500 of services rendered during that period has not been recorded or billed to customers.

5. An inventory count completed at October 31, 2020 revealed inventory of $44,700.

6) On January 1, 2020 Centre purchased a two-year liability insurance policy for $4,800.

7) A letter from Centre’s landlord dated October 25, 2020 demands a total of $18,000 to be paid to cover the rent for the months of September to November 2020 inclusive. Centre’s monthly rent expense has been constant for the past three years.

8) Supplies on hand at October 31, 2020 are estimated at $3,500.

P. 5-1

Transactions may have significantly different impacts on a government's budget, governmental funds statements, and government‐wide statements.

A school district prepares its budget on a cash basis. It is contemplating the changes or actions that follow. For each, indicate the impact that the change would have (1) on year‐ending June 30 2020, general fund expenditures or transfers and (2) on year‐ending June 30, 2020, government‐wide expenses (e.g., “increase expenditures by $X” or “no impact”). Provide a brief explanation of your response, indicating that you are aware of the relevant financial reporting issue.

1. Owing to a special discount offered by a supplier, the district will purchase $100,000 of supplies in June 2020 that they otherwise would not have purchased until July 2020. They will not, however, have to pay for the supplies until July. The district accounts for supplies on a consumption basis.
2. In fiscal 2020, the district increases the number of vacation days to which employees are entitled to take, thereby increasing the cost of vacation leave that employees earned in 2020 but will take in subsequent fiscal years by $250,000. The vacation days vest; they can be taken as termination benefits.
3. The district increased the number of sick days to which employees are entitled to take, thereby increasing the cost of sick days that employees earned in 2020 but will take in future years by $150,000. The sick leave can be taken only as employees are sick; it cannot be paid for as a termination benefit.
4. In 2020, the district established a sabbatical leave program for certain categories of teachers. Teachers will be granted one year of leave after each seven years of service. Teachers granted the leave will have to spend it engaging in various specified activities, such as research, aimed at improving their teaching. Teachers will first be eligible to take the leave in 2027. The district estimates that one‐seventh of the cost will be $1,500,000.
5. The district delayed from June to July the approval of a grant of $50,000 to a local health clinic that provides examinations to low‐income students. The funds are to be paid out of resources budgeted for the fiscal year ending June 30, 2020, and are intended for use by the clinic in that same period.
6. The district delayed from June to July purchasing, and paying for, 10 school buses at a cost of $750,000. The buses are expected to last for 10 years and have no salvage value. The district charges depreciation on a straight‐line basis and takes a full year's depreciation in the year of acquisition.
7. The district is required to transfer 50 percent of any annual surplus from the general fund to a “rainy day” fund (a special revenue fund). Usually the transfer based on the surplus of the fiscal previous year is made in December. The district proposes to delay the transfer that would ordinarily be made in December 2020 until July 2021, thereby decreasing its cash outlay for fiscal year 2020 by $3 million

I need copy and paste thx

1. Which are the followings is NOT correct about the bank holding companies?

a) Easy to transfer resources arounds the numbers of banks within the banking groups

b) Independent investment banks in U.S. formed BHC to expand because they were appealed to the expensive commercial banking business

c) Bank holding companies are tightly regulated by the government

d) Due to McFadden Act, bank in U.S. need to form a bank holding company if it wants to operate in another state

e) None of the above

2. Which of the followings is related to the economy of scope?

a) Investment bank specialize in advisory services expand to insurance business

b) Commercial bank form a BHC to expand its customer base to New York

c) Insurance company to collaborate with commercial bank to expand its customer base

d) Insurance company wants to specialize in advisory services by merging with investment bank

e) a) and d) of the above

3. Which of the following is NOT correct about the credit default swap?

a) It is a derivative instrument that typically requires holder (buyer) to pay a regular insurance premium to the writer (seller) over the life of the contract

b) The holder (buyer) has to own the asset when buying CDS products

c) In the case of default, writer (seller) pays holder (buyer) insured amount of money in return for defaulted asset

d) CDS spread (price) usually increase during economic downturn

e) b）and d) of the above

4. Which of the following is NOT correct about the loan securitization process?

a) Loan originators grant loans to borrowers and sell loan contracts to arrangers

b) Tranches (senior, mezzanine, and junior) usually share different interest rate

c) Arrangers (mostly, investment banks) create SPV to securitize pool of loans

d) Arrangers purchase loan contracts from the loan originators

e) None of the above