1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
olya-2409 [2.1K]
3 years ago
12

Advocates of the floating rate system argue that Multiple Choice there is no connection between the floating rate system and tra

de balance. floating rates boost exports. floating rates help keep inflation rates close to zero. floating rates help adjust trade imbalances. floating rates boost imports.
Business
1 answer:
OleMash [197]3 years ago
4 0

Answer: The answer is there is a connection between floating rate system and trade balance.

Explanation:

Floating exchange rate can be said to be a situation in which the exchange rate is allowed to move freely in response to the forces of demand and supply.The higher the demand for the currency the lower the supply for the currency. The higher will be the value of such currency in terms of other currency, a currency is demanded for the purchase of goods and services and for the purpose of investment. The investment we are talking about may be a long term investment or a short term investment. For example when a foreign company build a factory for the production of goods in another foreign countries.

The exchange rate in a free market economy is determined by the interaction of demand and supply. Demand for a particular currency is an indication of the export for the goods and services produced in such a country,in the sense that people that want to buy the export goods of a country will need the country currency to do so. On the other hand, the supply of a country's currency is determined by the amount of import of a country as the country's importers need to change their local currency to a foreign currency to be able to import foreign made goods into their country. For example if a Nigerian importer wants to import goods from United States to Nigeria such an importer will have to change the Nigerian Naira to United States dollar to be able to import such goods because payments for such a goods will be done in dollars.

The floating exchange rate help to adjust trade imbalance, in the sense that a country will import goods from a particular country in spite of their local production in other to ensure that the country other countries continues to purchase the country goods. A country can also use a floating exchange rate to keep inflation rate low when a country import goods that they can produced locally if their cost of Production is cheaper abroad than in their home country.this will ensure that the prices of the goods will be affordable for the consumers to buy, because the prices of such goods will be low.

You might be interested in
When a closed economy is in equilibrium, we know with certainty that
faust18 [17]

Answer:

inward shift in the supply curve.

Explanation:

= I = S + (T-G). shift in the supply curve.

4 0
2 years ago
Doyle Company issued $226,000 of 10-year, 5 percent bonds on January 1, Year 1. The bonds were issued at face value. Interest is
Thepotemich [5.8K]

Answer:

Dr cash                $226,000

Cr Bonds payable                    $226,000

31st December year 1

Dr cash                       $74,000

Cr Lease revenue                     $74,000

Dr interest expense               $11,300

Cr Cash                                                $11,300

31st December year 2

Dr cash                       $74,000

Cr Lease revenue                     $74,000

Dr interest expense               $11,300

Cr Cash                                                $11,300

Explanation:

Upon the receipt of $226,000 from bond issue,cash acount would be debited with $226,000 and bonds payable account would be credited with the same amount.

When land purchased,the land account is debited with $226,000 and cash is credited with $226,000.

The receipt of $74,000 from lease rental means that cash is debited and the lease revenue is credited.

The coupon interest on the bonds=$226,000*5%=$11,300

The coupon interest is debited to interest expense and credited to cash in each of the two years.

find attached t accounts.

Download xlsx
7 0
3 years ago
The argument took place between-----​
Sergeeva-Olga [200]

Answer:

?

Explanation:

3 0
3 years ago
Help plssssssssssssss
kupik [55]
4) paring 5) fish 6) utility 7) filet 8) chef 9) turning 10) bread

(might be wrong)
5 0
3 years ago
During the month of July, the Scolari Corporation received $60,000 in cash investments from owners, paid $25,000 cash for suppli
iris [78.8K]
The ending balance in the cash account for the month of july is 25,000
3 0
3 years ago
Other questions:
  • Lisa owns stock in Company ABC. Company ABC sent out an earnings report and gave each of the stockholders an amount of money bas
    5·2 answers
  • Which of the following sentences use slang or buzzwords?
    14·1 answer
  • What does compounding interest mean??
    8·1 answer
  • If the money supply is high, interest rates will be
    8·1 answer
  • _____ is the amount of information a communication medium can carry and the extent to which the medium enables the sender and re
    10·1 answer
  • Marina Inc. sells and services sailboats. On April 1, Marina financed the purchase of its entire inventory with ACE Finance Comp
    5·1 answer
  • Sharon would make an adjustment entry to __________ to record the $500 her company received from a customer to perform future se
    10·1 answer
  • Masse Corporation uses part G18 in one of its products.
    11·1 answer
  • Dakota Corporation decided to issue three-year bonds denominated in 5 million Russian rubles at par. The bonds have a coupon rat
    11·1 answer
  • Durable goods are: a. consumers' goods b. raw materials combined to produce consumer goods c. those that must be replaced after
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!