ROC Engineering, a Chinese Shipbuilding Company, Agrees to Build a Fleet

question 51

Multiple Choice

ROC Engineering, a Chinese shipbuilding company, agrees to build a fleet of submarines for the Sri Lankan navy, for which it will be paid in the local Sri Lankan currency. As per the agreement, ROC must also spend a substantial amount of the money it generates through this deal within the country. In accordance with the contract, ROC buys Sri Lankan tea at a reduced rate. This is an example of which of the following forms of countertrade?

• A) descending bid
• B) offset
• C) barter
• D) compensation deal
• E) buyback arrangement

Calculate the effect of inflation on savings and investment plans.

Utilize financial formulas to calculate loan amounts, repayment schedules, and outstanding balances.

Understand the principles of discounted cash flows to value conditional sale contracts and other financial agreements.

Understand the concept of compound interest and its application in financial planning.