The answer can include the following points:
Scarcity is one of the major factors that give money its value. Because if it was very common and everyone could find it easily, it will lose its value. Hence the primary factor is scarcity.
Apart from this, money gets its value from being durable, if for example, fruits were considered a medium of exchange, they would perish easy and would lose its value
Answer:
Value of nominal GDP ; PY = $ 1380 ans.
Explanation:
Monetarism is an economic school of thought that stresses the primary importance of the money supply in determining nominal GDP and the price level. The "Founding Father" of Monetarism is economist Milton Friedman. He said that Inflation is always and everywhere a monetary phenomenon.
We begin with the equation of exchange. This is the building block for monetarist theory. It says that
M × V = P × Y
where M is the quantity of M1
V is velocity of M1, or the average number of times that the dollar turns over in a given year on the purchase of final goods and services
P is the price level, and Y is real output.
Now changes in M V will change the nominal GDP ; P Y
Initially, we have M V as 200 ( 6) =$1200
Now , we have M = $200 and V = 6 + 15% ( 6 )
V = 6 + 0.9 ; V = 6.9
MV = PY
MV = 200 ( 6.9 ) ; MV = $1380
Hence, value of nominal GDP ; PY = $ 1380 ans.
B. extracurricular activities!
Answer:
Audit Risk and Materiality
These two concepts have an inverse relationship. When the materiality level is set low, the audit risk envisaged by the auditor is on the high side. When the materiality level is set high, the audit risk as perceived by the auditor is on the low side.
But, what exactly is materiality? Materiality refers to the basis that can change or influence the judgment of a reasonable person arising from a quantitative and qualitative omission or misstatement of a fact. And audit risk refers to the risk of material misstatement in the financial statements presented by a company.
Explanation:
The risk of material misstatement in the financial statements is the reason that professional auditors design their audit procedures to reduce the audit risk to an acceptably low level. This implies that auditors gather more audit evidence when the materiality is set to a low level, showing that audit risk has increased and vice versa.
