1. How does Foreign Direct Investment relate to the current account?
2. Bank 1 pays a nominal annual interest rate of 4% compounded monthly. Bank 2 pays a nominal annual interest rate of i(365), compounded daily. What should i(365) be so that the banks pay the same effective annual rate?
3. You take out a loan at an APR of 12% without monthly compounding what is the effective rate on your loan.