Different between onshore and offshore interest rates

Assignment Help Financial Accounting

Reference no: EM131216355

Explain shortly the following

(a) Onshore-offshore interest differential i.e the different between onshore and offshore interest rates (define more explicity what this means and state how it can be used to consider the extent of intertemporal trade between countries.

(b) Double entry bookkeeping(or double entry accounting ) in the balance of payments, along with the definition, demonstrate it with the potential US balance of payments categories of NX(net export) balance on primary income, balance on secondary income, capital account, the net credit nonreserve financial account and OSB the negative of the official settlement balance and the scenario that a US firm exports candy bars to Italy receiving euro in return.

(d) economic stability loss from joining an exchange rate (explain why the loss arises)

Reference no: EM131216355

Questions Cloud

Income tax bracket : “If you found yourself in the 91 percent income tax bracket in 1951, how great would have been your incentive to find legal loopholes to reduce your federal tax liabilities? If you found yourself in the lowest federal personal income tax bracket, say..

Find the pdf of the statistic : Assuming that the XK and the YK are both standard normal, find the PDF of the statistic and show that it follows an F distribution.

What is the goal of humanist psychology : Which school of thought in psychology evolved into an elaborate theory of personality and method of psychotherapy? Which school of thought in psychology emphasized the purpose of behaviour?

Compute what price katrinas candies should charge : Algebraically, determine what price Katrina's Candies should charge in order for the company to maximize profit in the short run. Determine the quantity that would be produced at this price and the maximum profit possible.

Different between onshore and offshore interest rates : Onshore-offshore interest differential i.e the different between onshore and offshore interest rates (define more explicity what this means and state how it can be used to consider the extent of intertemporal trade between countries.

Discuss the important milestones in economic theory : What was the promise of capitalism? Discuss the important milestones and historical developments in economic theory and specify the contributions of each of the profits.

Forecasting revenue-costs and estimated cash flows : Forecasting Revenue, Costs, and Estimated Cash Flows. To prepare for this Assignment, use the Netflix and Amazon Data Spreadsheet, located in this week’s Learning Resources, to generate a pro forma forecast and consider what this indicates about the ..

Estimate the mean and variance : Let X, Y, Z and be independent Gaussian random variables with equal means of µ =3. - Estimate the mean and variance.

Compute the importance of predicting the pricing strategies : Determine the importance of predicting the pricing strategies of rival firms in an industry characterized by mutual interdependence. Examine the common price setting strategies of airlines that use game theory.

User Account

All Pages