--%>
Assignment Help - homework help

Demand for French euros or a supply of French euros

Denote whether each of the following build a demand for, or a supply of, French euros in foreign exchange markets:

a. A Canadian importer buys a shipload of Bordeaux wine.

b. An Italian automobile firm decides to make an assembly plant in Halifax.

c. A Canadian university student decides studying at the Sorbonne for one year.

d. A German manufacturer exports machinery through one French port to another on a Canadian freighter.

e. Spain incurs balance of payments deficit in its transactions along with France.

f. A Canadian government bond held through a French citizen matures and the loan amount is paid back to that person.

g. It is extensively believed that the international value of the euro will drop in the near future.

E

Expert

Verified

A demand for euro is made in (a), (c), and (f). A supply of euros is made in (b), (d), (e), and (g).

   Related Questions in Finance Basics

  • Q : What are Authorized Positions

    Authorized Positions: As replicated in the Governor’s Budget (Expenditures by Category and modifications in Authorized Positions), corresponds with the “Total, Authorized Positions” illustrated in the Wages and Salaries.

    		•
  • Q : Why banks make short-term or

    Banks desire to make short-term, self-liquidating loans to businesses. Why? Banks desire to be able to illustrate where the funds are likely to come from such that the borrower is capable to employ to make the req

    		•
  • Q : Demand for small automobiles Normal 0

    Normal 0 false false

  • Q : How does the market find out the fair

    How does the market find out the fair value of a bond?The fair value of bond is the present value of the bond's coupon interest payments plus the present value of the face value payment at maturity, discounted at the market's required rate of re

    		•
  • Q : In which ratios long-term bond investor

    Which ratios would a potential long-term bond investor is most interested in? Describe. Current & potential lenders of long-term funds, such like banks & bondholders, are interested in debt ratios.  While a business's debt ratios ri

    		•
  • Q : Cyclically adjusted budget Normal 0

    Normal 0 false false

  • Q : What is Capital Outlay Capital Outlay

    Capital Outlay (CO): A character of expenses of funds to obtain land, plan and build new buildings, expand or transform existing buildings, and/or purchase tools associated to such construction.

    		•
  • Q : Define Reserve Reserve: The amount of a

    Reserve: The amount of a fund balance set sideways to give for expenditures from the unencumbered balance for ongoing appropriations, future apportionments, and economic uncertainties, pending salary or price raise appropriations, and appropriations f

    		•
  • Q : Distinguish among refinancing debt and

    Normal 0 false false

  • Q : Have mergers influenced competition

    Have mergers influenced competition?Federal Reserve data illustrates that measured on the local level, where competition takes place; markets have in fact experienced more banking competition, not less, in the past decade.

    		•