Author Question: James used 250,00 . from his savings account that paid an annual interest of 15 to purchase a ... (Read 58 times)

xroflmao · **on:** Jul 1, 2018

James used 250,00 . from his savings account that paid an annual interest of 15 to purchase a hardware store. After one year, James sold the business for 320,000 . An economist calculated his profit to be:
a. 320,000
b. 70,000
c. 282,500
d. 32,500

Question 2

In the case where interest rates are lower in Japan, which of the following is an example of a carry trade
a. Increase borrowing in the US, convert to Yuan and invest in financial assets in Japan
b. Increase borrowing in Japan and invest in Japan
c. Increase borrowing in Japan, convert to Dollars and invest in the US
d. Increase borrowing in the US and invest in the US