1.Interest rates
The interest rate level is moved higher or lower by a country's central bank to either stimulate or slow down an economy. Higher interest rates impose a more costly fee to borrow money while lower interest rates lessen the fee and usually spur more borrowing
2.Economic growth
The strength of an economy can go a long way to boosting the strength of the nation's currency. A strong growth rate in a country will see a growing demand for products and services with better job prospects for workers as well as being an attractive destination for capital and investments.
3.Inflation
When a product rises in price, it signals that there is an underlying demand for that product. Higher prices may not seem good to a consumer, but it is generally considered healthy for a country to have a moderate increase in inflation in a growing economy.
Answer:
Following are the solution to this question:
Explanation:
In point a:
Journal Entry :
Account Dr Cr.
Goods completed
Processing work
Complete total labour costs
In point b:
Uncompleted jobs cost:

Answer:
b. deposits in transit
Explanation:
Bank Reconciliation: The bank reconciliation deals with the bank statement balance and the cash statement balance. The motive is to compare these two statements so that the organization can run in the smooth manner.
There are various transactions due to which the bank statement balance and the cash statement balance do not match. To match these statements, we adjust the transactions accordingly.
The adjusting entry of interest earned is
Cash A/c Dr
To Interest income A/c
(Being interest is earned)
Likewise, for The fee for collection
Bank charges A/c
To Cash A/c
(Being fees is charged)
And for NSF check of customer, it would be
Account receivable A/c Dr
To Cash A/c
(Being the adjusting entry is made)
So, for this the adjusting entry is made but for Deposit in transit , no adjusting entry would be made.
Answer:
- The budget deficit will decrease
- The curve it changes is the loanable funds curve
- The loanable funds curve shifts to the right
- The equilibrium interest rate falls
Explanation:
The reduction in transfer payments by Government will cause the budget deficit of the Government to decrease and also the the decrease in the Budget deficit will lead to the availability of loanable funds thereby causing the loanable funds curve to shift to the right.
With the availability of loanable funds the equilibrium interest rate will fall below its usual equilibrium level.and the Government can reduces transfer payments to achieve all of this.