When Europeans First Came to the New World They Would

question 38

Multiple Choice

When Europeans first came to the new world they would typically sail south and west to Canary Islands, then west to get to the West Indies. On their return they would go north past the Leeward Islands and Canadian Maritime provinces before turning east towards Europe? Why did they choose this circular route?

• A) They were attempting to follow the shortest distance, via what is called a Great Circle route.
• B) The ships were affected by the Coriolis effect, so this was the natural route.
• C) Although this route was against the ocean currents, it followed the prevailing wind direction.
• D) This route followed both the prevailing winds and ocean currents, speeding the trip despite longer distances.

Evaluate the economic implications of using forward contracts for hedging purposes.

Analyze the financial statement impacts of unrealized and realized gains or losses on foreign currency transactions.

Apply critical thinking to determine the best hedging strategy based on given financial scenarios.

Understand and apply the accounting principles related to foreign currency transactions.

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A term similar to homoplasic, describing characteristics that arise independently in different lineages, not from a common ancestor.

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