1. (10 pts) Choose C, 1, G, X, M or N (for none of the above) to show how the following transactions will be recorded in Canada's GDP Some transactions may require more than one answer.
a. You buy a $100 Lego set to give to your young nephew (in Vancouver) for Christmas.

B. You enter an agreement to pay the BC Cancer society S100 each month since you think they are doing good work to fight cancer.

C. A Japanese investor buys a successful hotel in Vancouver because it looks so profitable.

D. This Japanese-owned hotel hire many new workers as it tries to raise service levels to please new customers.

E. This Japanese-owned hotel buys new luxurious beds (made in Japan) to try to please new customers.

Factors like the unemployment rate, the stock market, global trade, economic policy, and the economic situation of other countries have no influence on the financial status of individuals. question 1 options: true false

Security a has a higher standard deviation of returns than security b. we would expect that: (i) security a would have a risk premium equal to security b. (ii) the likely range of returns for security a in any given year would be higher than the likely range of returns for security b. (iii) the sharpe ratio of a will be higher than the sharpe ratio of b. (a) i only (b) i and ii only (c) ii and iii only (d) i, ii and iii

The east asiatic company (eac), a danish company with subsidiaries throughout asia, has been funding its bangkok subsidiary primarily with u.s. dollar debt because of the cost and availability of dollar capital as opposed to thai baht-denominated (b) debt. the treasurer of eac-thailand is considering a 1-year bank loan for $247,000.the current spot rate is b32.03 /$, and the dollar-based interest is 6.78% for the 1-year period. 1-year loans are 12.04% in baht.a. assuming expected inflation rates of 4.3 % and 1.24% in thailand and the united states, respectively, for the coming year, according to purchase power parity, what would the effective cost of funds be in thai baht terms? b. if eac's foreign exchange advisers believe strongly that the thai government wants to push the value of the baht down against the dollar by5% over the coming year (to promote its export competitiveness in dollar markets), what might the effective cost of funds end up being in baht terms? c. if eac could borrow thai baht at 13% per annum, would this be cheaper than either part (a) or part (b) above?