2. The theoretical development of the residual income model
relies on the “clean surplus relation,” or that all changes in book
value are caused by either current earnings that are retained in
the firm or dividends that are paid out. What transactions cause a
violation to this relationship under U.S. GAAP? Should U.S. GAAP
alter accounting standards to move closer to this clean surplus
relationship? Why or why not?
In: Accounting
Why did the 2007 U.S. subprime crisis spread rapidly?
A. Banks in other countries failed to measure the risk of real estate derivatives.
B. The United States adopted the fixed exchange rate system.
C. The Fed failed to act at the right time.
D. The United States had a large current account surplus.
E. There was speculation against the U.S. dollar.
In: Economics
Research and find specific examples of immigrants working as a) substitutes for U.S. workers and b) compliments to U.S. workers. Make sure you put the correct graph with each story. Use examples different from the ones on this website. Ten bonus points go to anyone who comes up with a real example (with links to source material) that I haven’t looked at before.
In: Economics
The one-year risk-free rate in the U.S. is 3.060 percent and the one-year risk-free rate in Mexico is 4.88 percent. The one-year forward rate between the Mexican peso and the U.S. dollar is MXN12.262/$. What is the spot exchange rate? Assume interest rate parity holds.
rev: 05_17_2019_QC_CS-168753
Multiple Choice
MXN12.049/$
MXN12.479/$
MXN14.889/$
MXN12.262/$
MXN13.919/$
In: Finance
Which of the following is correct?
a. An increase in the money supply causes the interest rate to decrease so that aggregate demand shifts right
b. An increase in stock prices reduces consumption spending so that aggregate demand shifts left
c. A recession in other countries reduces U.S. net exports so that U.S. aggregate demand shifts left.
d. All of the above are correct.
In: Economics
Explain the impact that tariffs and quotas have on a specific domestic industry of your choice. In your answer, please explain the impact that the two policies have on domestic producers, foreign producers, domestic consumer, foreign consumers and the U.S. government. Also, explain the key differences between the impacts that each policy has on the terms of trade between the U.S. and its trading partners.
In: Economics
Analyze the U.S. term structure of interest rates. Your answer should include a “picture” of the current U.S. Treasurys yield curve (note the date you use), an exposition of the basic theories trying to explain the yield curve, and your composite explanation of what the current yield curve is predicting. Be sure to provide the reasoning/theory(ies) underlying the predictions you present.
In: Finance
In: Accounting
• Prompt: Federal Reserve Bank, U.S. Banking System, and Fractional Reserve System. Please write a paper that discusses the role of the Federal Reserve Bank in the U.S. banking system. Describe the Fractional Reserve System and the Federal Reserve Bank’s involvement in it. • Requirements: The paper should be at least 1,500 words. Use APA format and provide at least five peer reviewed references
In: Finance
Use the following data to work Problems 1 to 4:
The following events have occurred in the history of the United States:
Explain the combined effects of these events on U.S. real GDP and the price level, starting from a position of long-run equilibrium
In: Economics