An agreement to exchange dollar bank deposits for euro bank deposits in one month is a <u>forward transaction.</u>
<h3>
What is a forward contract?</h3>
A tailored agreement between two parties to purchase or sell an item at a predetermined price at a later date is known as a forward contract. Although its non-standardized nature makes it particularly suitable for hedging, a forward contract can be utilized for speculating or hedging.
A forward contract can be tailored to a commodity, amount, and delivery date, unlike typical futures contracts. Grain, precious metals, natural gas, oil, and even chicken are examples of traded commodities. Settlement of a forward contract may take place in cash or by delivery.
Forward contracts are categorized as over-the-counter (OTC) instruments because they are not traded on a centralized exchange. While the OTC nature of these products makes it simpler to adjust terms, the absence of a centralized clearinghouse also increases the chance of default.
Thus, it is a forward transaction that is used to exchange dollar bank deposits for euro bank deposits in one month.
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Explanation:
In the scenario described above, it can be identified that the behavioral characteristic of the manager is that he is an aggressive person.
This type of behavior has as main characteristics the expression of your ideas, needs and feelings to the detriment of those of other people, this can be seen in the question in the excerpt that says that the manager made an important decision for the business without consulting his superiors because you believe they feel the same way about the economy as you do.
Although this aggressive behavior can sometimes be expressive, it can also lead to hostility.
As the output is increased or decreased, these (B) fixed costs remain unchanged.
<h3>
What are fixed costs?</h3>
- Fixed costs, also known as indirect costs or overhead costs in accounting and economics, are corporate expenses that are independent of the volume of goods or services generated by the business.
- They are usually recurrent, such as monthly interest or rent.
- These expenses are frequently capital expenses.
<h3>Explanation -</h3>
- Dependent refers to a variable that changes when other factors change.
- Fixed cost refers to a cost that doesn't change when the number of goods produced increases or decreases.
- Opportunity cost refers to the benefit that you would have received from the option that was not chosen.
- Marginal cost refers to the change in the cost when you produce an additional unit.
- According to this definition and as the statement refers to a cost that doesn't change.
Therefore, as the output is increased or decreased, these (B) fixed costs remain unchanged.
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Complete question:
If a company rents a warehouse, it must pay rent for the warehouse whether it is full of inventory or completely vacant. Other examples include executives' salaries, interest expenses, depreciation, and insurance expenses. As the output is increased or decreased, these _______ costs remain unchanged.
a. dependent
b. fixed
c. opportunity
d. marginal
Answer:
Explanation:
X1 X2 Z
0 0 0
16 0 4,000
0 10 3,500
8 6 4,100
check the picture attached for more explanation
