Answer: d. None of the above
Rockford Co. is a U.S. manufacturing firm that produces goods in the U.S. and sells all products to retail stores in the U.K.; the goods are denominated in pounds. It finances a small portion of its business with pound-denominated loans from British banks. Which of the following is true? (Assume that the amount of products to be sold is guaranteed by contracts.)
a. The dollar value of sales is higher if the pound depreciates against the dollar.
b. The dollar value of sales is unaffected by the pound's exchange rate.
c. A and B
d. None of the above
Business
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When compared with a 30-year payment period, taking out a loan with a 20-year payment period would result in
A) slower equity buildup. B) greater impound requirements. C) lower monthly payments. D) higher monthly payments.
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Under current federal income tax laws, which of the following are tax-deductible items for an owner-occupied single-family dwelling:
A: Mortgage interest payments, property taxes, and mortgage prepayment penalty; B: Mortgage interest payments, capital repairs, and real property taxes; C: Late charges, mortgage interest payments, and broker's commissions; D: Mortgage payments, property taxes, and fire insurance premiums.
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