2.55 premium or discount. I guess I screwed up. Initially did 2.55 discount but when in last 5 mintues when I was checking it again I put it as 2.55 Premium. God knows wtf I was thinking.

I wasn’t too sure about whether to include Net Financial Aid in CA or FA. While CFAI curriculum does say include any transfers into CA, Net Financial Aid is like borrowing except instead of repaying interest and principal in the future (and thus including Net Financial Aid as FA item), the country is expected to make non-monetary concessions (such as supporting a war declared by the helping country). This, in essence, is the cost of such financial aid and, thus, it should be considered a Financial Account item. IMHO. So, I didn’t include it into CA. Overthought it probably.

i too ddin’t add tourist income first, but then realised it was INCOME, so i guessed it should go to the current a/c… over05 Wrote: ------------------------------------------------------- > Tourist income should not go in there I > think…what category does it fall in if it goes > in?? Not i/e, not interest income, not gift, > transfer…

i got 2.55% discount

I thought the LC was depreciating…? I reasoned my way out of Current Ration and think I took the payables turnover or something. F@CK!

still missing one. come on people, surely you can remember:) what am i missing here: #1 was Curr. Acct, 2 was Financial acct, we had one about arbitrage, a fourth about what contry D would import. 5 was currency discount. what was #6?

^^^^^^^^ effect of growth on current and financial

hm… i vaguely remember something like this. i recall reasoning thru it.

yeah, there was one that said if CA goes up then… FA goes down, or inverse. That was a gimme :slight_smile: (unless i’m wrong- then I’m an idiot)

but, must’ve been a gimme if i can’t even remember it. of course the balance overall will be zero. i count it +1.

how about this? 1. ca 3.9 2. fa 1.9 3. arbitrage: borrow $ sell local fwd 4. which good D imports? 5. fwd discount, what amount? 6. grow high, CA decr, FI incr. can anyone remember 4 and 5?

discount 2.52 import 2 and 4

i think i messed up 1 and 2 (stupid mistakes). i agree on 3. D imports 2&4 (spent 5 mins thinking the question asked the opposite and was getting nowhere). 5-discount i think 2.55%, i remember 6 now, i agree with the above. CA decreases due to increases in the demand for imports, FA increases due to inv. inflows.

How was it a DISCOUNT? Didn’t we have to invert the quoted rate to find the US premium/discount PER the LC? The initial quote was in LC/USD I thought. F*ck me if I got this wrong, I might as well write off econ. I’m pretty sure I had a premium.

it was a discount. With direct exchange rates (x/y) the pr/disc on y is found (f-s)/s*(12/#months)

fwd is 1.43, spot is 1.45, so 1 USD is worth less (1.43) in fwd than in spot (1.45), thus, it’s a discount in fwd.

i got 1 & 3 for the products, but i went back and forth alot on that one. you had to depreciate the LC because of the inflation differential. screw econ. worst section for me this year. on the discount, since you need effect... already in denom, so that’s the reference security of the equation.

interms of USD … it was a discount. coz FC in the forward rate was less then in the spot rate…fc/dc…

I got >70 in level on econ; and got always > 83% in all mock exams, samples exams, practice exams, pseudo exams, … But I only got 20% for econ on the real 2008 scams.

it’s unbelivable that Schweser never even bothered to mention the formula in their nites!!!Can’t fu**ing believe it!!!it cost 2 questions and my life is hanging on a thread