Author Question: When a U.S. company purchases 1 million worth of French cheese, the value of that transaction is ... (Read 70 times)

V@ndy87 · **on:** Jun 30, 2018

When a U.S. company purchases 1 million worth of French cheese, the value of that transaction is recorded in the

A) current account.
B) capital and financial account.
C) transfer account.
D) investment account.
E) goods account.

Question 2

Consider the following five investments. If the nominal interest rate is five percent, which projects should be undertaken? (Note: The returns are for one period later.)

Investment Cost Returns
A 100 106
B 300 313
C 200 218
D 50 55
E 400 418

amy.lauersdorf90 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

A

Answer to Question 2

At an interest rate of five percent, projects A, C and D have returns that exceed the five percent threshold.