When Deciding Between U

question 167

Multiple Choice

When deciding between U.S.and British government securities,an American investor typically considers:

• A) U.S.and British interest rates and anticipated changes in the exchange rate
• B) Budget deficits of the U.S.government and British government
• C) Shifts in the demand for U.S.goods and British goods
• D) U.S.and British inflation rates and anticipated changes in the exchange rate

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Definitions:

Plant Asset

Long-term tangible assets that are used in the operations of a business and are not intended for sale.

Book Value

The value of an asset as recorded on a company's balance sheet, calculated as the cost of an asset minus accumulated depreciation.

Double Declining-balance

An accelerated method of depreciation where an asset's book value is reduced at double the rate of its straight-line depreciation.

Accelerated Depreciation

A method of depreciation used for accounting or income tax purposes that allows higher deductions in the earlier years of the useful life of an asset.