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NEW QUESTION: 1
Robert Williams is a junior analyst at Anderson Brothers, a large Wall Street brokerage firm. He reports to Will McDonald, the chief economist for Anderson Brothers. McDonald provides economic research, forecasts, and interpretation of economic data to all of Anderson's investment departments, as well as the firm's clients. McDonald has asked Williams to analyze economic trends in the country of Bundovia. The currency of Bundovia is the Bunco (BU).
Williams first analyzes the effect of rising nominal Bundovian interest rates relative to U.S interest rates on the supply and demand for BU. He determines that the increase in Bundovian nominal interest rates would increase the demand for BU and, because the BU supply curve is upward sloping, the BU will appreciate and the equilibrium quantity of BU will increase proportionately.
Bundovia has announced plans to impose either a tariff or a quota on semiconductor imports from the United States. McDonald also asks Williams to analyze the potential effect on Bundovian Semiconductors, the dominant semiconductor manufacturer located in Bundovia. Currently, Bundovian Semiconductors is not competitive in the global semiconductor market because its higher production costs make it unable to generate profits at the current world market price. Williams concludes that the imposition of either a tariff or quotas would benefit Bundovian Semiconductors. The company would become competitive with foreign producers in its domestic semiconductor market because imports would be reduced and domestic production would rise.
Exhibit 1 shows the trend in the average BU/USD exchange rate over the past three years.

Williams asks the bank for a GBP/SFr cross rate.
From the same bank, Williams receives the following forward rate quotes in the USD/GBP market:
* 30-day forward rate: USD/GBP = USD/GBP = 2.0045 - 55
* 60-day forward rate: USD/GBP = USD/GBP = 2.0075 - 85
Williams has uncovered a potential arbitrage opportunity in the foreign exchange markets. The current spot rate is $2.00 per BU. The Bundovian risk-free interest rate is 3%, and the one-year forward rate is $2.10 per BU. The U.S. risk-free rate is 5%.
Is Williams's analysis of the effect of rising nominal Bundovian interest rates on the value and equilibrium quantity of the BU correct?
A. No, because the supply of BU will decrease and, as a result, the equilibrium quantity of BU will not change significantly.
B. Yes.
C. No, because the supply of BU will also increase, and the BU will depreciate instead of appreciate.
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Rising nominal Bundovian interest rates will increase the demand for BU and decrease the supply of BU.
The increase in demand, all else equal, will cause the BU to appreciate and increase the equilibrium quantity. The decrease in supply, all else equal, will also cause the BU to appreciate but decrease the equilibrium quantity demanded. The net effect of these two changes is to cause the BU to appreciate.
However, the separate effects on quantity demanded will offset, and the equilibrium quantity will not be significantly affected. (Study Session 4, LOS 17.c and I9.d)

NEW QUESTION: 2
Which of the following persons would not be required to register with the state as an agent under the guidelines of the Uniform Securities Act (USA)?
A. Keith is a salaried employee of Middlesex County in Massachusetts who sells revenue bonds issued by the county to the public.
B. John is employed by TrustUs Corporation to sell shares of the firm's stock to the firm's employees and receives a commission on the shares he sells.
C. Preetham is part-owner of SecureMoney Broker-Dealers and executes the purchase and sale of securities for the firm's customers.
D. Stefan is a sales representative for SecureMoney Broker-Dealers and sells only mutual fund shares.
Answer: A
Explanation:
Explanation/Reference:
Explanation: Keith would not have to register as an agent since he is a salaried employee of a county in Massachusetts selling county-issued bonds to the public. He is not representing a broker-dealer; he is not receiving a commission on the bonds he sells; and he is selling exempt (government-issued) securities.
John receives a commission on his sales, so he is considered to be an agent. Stefan is a sales representative employed by a broker-dealer, which makes him an agent under USA guidelines. Even though Preetham is part-owner of the broker-dealer for which he is effecting transactions, he is acting as an agent in doing so.

NEW QUESTION: 3
Which of the following laptop hardware would be the LEAST likely to be replaced?
A. RAM
B. CPU
C. Hard drive
D. Display screen
Answer: B

NEW QUESTION: 4
Which two statements about NTP stratum are true? (Choose two )
A. Stratum 1 devices are connected directly to an authoritative time source
B. Stratum 15 indicates a device that is not synchronized
C. Stratum 2 devices receive their time from a peer that is connected directly to an authoritative time source
D. The highest stratum level a synchronized device can have is 16.
E. Stratum 1 devices receive their time from a peer that is connected directly to an authoritative time source.
F. Stratum 0 devices are connected directly to an authoritative time source
Answer: A,E