Please attempt at least 5 of the following questions as optional assignments. However, a
maximum of extra 10 points (equivalent of 2 points toward course grade) will be
awarded, if attempted. This is individual assignment posted in the assignment box.
"A balance of trade deficit must always be offset by net capital inflows from
abroad." Agree or disagree with this statement and explain.
Suppose a Japanese firm buys a 1 year treasury bill with a face value of $10,000
today for $9400. If the value of the dollar declined from 110 to 105 yen during
the year, what rate of return does the Japanese firm earn on its investment?