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2 years ago

A dilemma challenging the existing structure of the European Central Bank (ECB) has been brought on by: Part 2

1 answer:

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defining and implementing monetary policy. conducting foreign exchange operations. holding and managing the euro area's foreign currency reserves. promoting the smooth operation of payment systems.

<h3>What is foreign currency reserves?</h3>

Foreign Exchange Reserves are cash and other reserve assets, such as gold, held by a central bank or other monetary authority and used primarily to balance a country's accounts, influence the foreign exchange rate of its currency, and maintain financial market confidence.

Foreign exchange reserves are a country's emergency funds in the event of an emergency, such as a rapid depreciation of its currency. Countries use foreign currency reserves to maintain a fixed rate of value, maintain competitively priced exports, remain liquid in the event of a crisis, and provide investors with confidence.

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If the money supply has increased by 3 percent, nominal income has risen 5 percent and the price level has risen by 1 percent, w

Shalnov [3]

4% is the percent change in real income.

What is the meaning of real income?

Real income, also known as real pay when referring to an individual's income, is the amount of money that an individual or entity makes after taking inflation into account. To have the best knowledge of their purchasing power, people frequently closely monitor the difference between their nominal and actual income.

What is meant by nominal income?

Nominal income is money that hasn't been adjusted for inflation-related changes in buying power, or how much one can buy with that money.

What Is Price Level?

The price level is determined by averaging the current prices for all the goods and services produced in an economy. Price level, in a broader sense, refers to the cost or price of a good, service, or security in the market.

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4 0

1 year ago

Deluxe Ezra Company purchases equipment on January 1, Year 1, at a cost of $469,000. The asset is expected to have a service lif

marissa [1.9K]

Answer:

to calculate depreciation using the sum-of-the-years'-digits method:

n(n+1) divided by 2 = [12(13)] / 2 = 78

depreciable value = cost - salvage value = $469,000 - $40,000 = $429,000

depreciation year 1 = 12/78 x $429,000 = $66,000
depreciation year 2 = 11/78 x $429,000 = $60,500
depreciation year 3 = 10/78 x $429,000 = $55,000

the formula used to calculate depreciation using the double-declining-balance method is:

2 x cost of the asset x depreciation rate

depreciation year 1 = 2 x $469,000 x 1/12 = $78,167
depreciation year 2 = 2 x ($469,000 - $78,167) x 1/12 = $65,139
depreciation year 3 = 2 x ($390,833 - $65,139) x 1/12 = $54,282

6 0

3 years ago

Write 5-7 words that are similar to marketing. What words come to your mind when you think of marketing?

Gwar [14]

Answer:

sell, retail, trade, advertise, promote, buying,

Explanation:

7 0

3 years ago

A voip caller wishing to contact another sends an invite message to ________.

kolbaska11 [484]

There are three choices the caller's H.323 proxy server, the receiver's H.323 proxy server and the receiver directly but none of these choices are correct. So the answer in this question will be none of the above. It is hard to know where you would send the invite message so the answer is NONE.

4 0

4 years ago

You purchased shares of stock one year ago at a price of $62.37 per share. During the year, you received dividend payments of $1

andreyandreev [35.5K]

Answer:

real rate of return= 10.93%

Explanation:

The return on equity is the sum of the dividends earned and capital gains made during the holding period of the investment.

Dividend is the proportion of the profit made by a company which is paid to shareholders.

Capital gains is another type of the return made on an equity investment as a result of increase in the value of the shares. It is difference between the cost of the share and the value at the time of disposal.

Therefore, we can can compute the return on the investment as follows:

Capital gain = $69.49- 62.37 = 6.92

Dividend -= 1.77

Nominal return on stock= (1.77 + 6.92)/ 62.37 × 100 = 13.93 %

Inflation is the increase in the price level.It erodes the value of money.rise in the price of money

Nominal interest is that quoted for investment or loan transactions. It has not been been adjusted for inflation.

Real interest rate is the amount of interest in terms of the the quantity of good and services that can be purchased. It is the nominal interest rate adjusted for inflation.

The relationship between inflation, real return and nominal return rate is given using the Fishers Effect;

N = ( (1+R) × (1+F)) - 1

N- nominal rate, R-real rate, F- inflation

real rate of return = (1.1393)/ (1.027)- 1 = 0.1093

real rate of return = 0.1093 × 100 = 10.93%

real rate of return= 10.93%

8 0

3 years ago

A dilemma challenging the existing structure of the European Central Bank​ (ECB) has been brought on​ by: Part 2

A dilemma challenging the existing structure of the European Central Bank (ECB) has been brought on by: Part 2