Stock values computed by valuation models may differ from actual market prices because it is difficult to

Select one:

a. estimate future dividend growth rates.

b. estimate the risk of a stock.

c. forecast a stock's future dividends.

d. all of the above are true.

An anchor currency provides the base for a floating exchange rate system.

Select one:

True

False

Holding other factors constant, which of the following would increase the size of the U.S. current account deficit?

Select one:

a. Sales of U.S. farm products in Europe

b. Visits by European tourists to the United States

c. Increasing travel by American college students in Europe

d. Both A and B of the above

A countrys current account ________ indicates that this country is ________ its claims on foreign wealth.

Select one:

a. balance; decreasing

b. deficit; increasing

c. surplus; increasing

d. surplus; decreasing