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kati45 [8]
3 years ago
9

The newly discovered island of Mogran is in the process of setting up a new country and establishing a monetary system. The Mogr

an people start talking about the currency they would like to create.
The first proposal is to issue the Mogran Moola (their new currency) in only 3 denominations of paper bills (100, 500 and 1000 Moolas) but no coinage. In order to save time and resources they will print their currency on a heavy stock cardboard.

The bills will be about the size of a business card so that the Mogran people will be able to easily carry it with them in their wallets.

Why will the Mooola not function as a medium of exchange?
Business
1 answer:
Yanka [14]3 years ago
3 0

Answer and explanation:

The characteristic of money as a medium of exchange implies the parties involved in a transaction have currencies that <em>facilitates the economical trade</em>. Besides having uncomfortable cardboard presentations, Mogran's currency does not have a coin system which will make trade impossible for articles of low cost. Thus, the Moola is not achieving the medium of exchange feature of money.

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Answer:

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Explanation:

Please find the below for detailed explanation and calculations:

We have the formula for calculating the ratios as require in the question: Margin = Net operating income/ Sales ; Turnover = Sales/Average operating assets; Return on investment = Net operating income/ Average operating assets.

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The turnover for Alyeska Services Company is calculated as Sales/Average operating assets or 17,300,000/35,300,000 = 49.01%;

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6 0
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8 0
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