Question: Question 22 (Mandatory) (12 points) Classify the following transactions (current account transaction, financial account transaction) and write the sign of entry (plus or minus/ debit

 Question 22 (Mandatory) (12 points) Classify the following transactions (current account
transaction, financial account transaction) and write the sign of entry (plus or
minus/ debit or credit). Choose one country of reference: 1. A US
firm purchases German machine tools. 2. An American buys stocks of a

Question 22 (Mandatory) (12 points) Classify the following transactions (current account transaction, financial account transaction) and write the sign of entry (plus or minus/ debit or credit). Choose one country of reference: 1. A US firm purchases German machine tools. 2. An American buys stocks of a European food chain on the Frankfurt Stock Exchange 3. An American tourist takes a cruise on a Dutch cruise line. 4. Ford Motor company builds a factory in Australia. Question 24 (5 points) Saved Bank A quotes a bid rate of $0.020 and an ask rate of $0.023 for the Thai baht (THB). Bank B quotes a bid rate of $0.024 and an ask rate of $0.026 for the baht. What will be the (approximate) profit for an investor who has $500,000 available to conduct arbitrage? 22,446 20,333 24,562 21,739 Question 26 (5 points) The spot and 30-day forward rate for the Dutch guilder are $0.3155 and $0.3075, respectively. The guilder is said to be selling at: a forward premium or discount? Of what percentage? forward discount of 30.42% O forward premium of 26.01% forward discount of 26.01% forward premium of 30.42% Question 27 (5 points) A German firm is attempting to determine the euro/pound exchange rate and has the following exchange rate Information: USD/pound - $1.5509/ and the USD/euro rate - $1.2194/. Therefore, the euro/pound rate must be: 1.5509/ 1.1945/ 0 1.2719/ 61.2566/E

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