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Yanka [14]
3 years ago
11

Purchasing Power Parity (PPP) theory states that A. the exchange rate between currencies of two countries should be equal to the

ratio of the countries' price levels. B. as the purchasing power of a currency sharply declines (due to hyperinflation) that currency will depreciate against stable currencies. C. the prices of standard commodity baskets in two countries are not related. D. both a) and b)
Business
1 answer:
natulia [17]3 years ago
8 0

Answer:

The correct answer is A and B

Explanation:

PPP stands for Purchasing Power Parity, which is a theory that states or define as the exchange rate among the currencies of 2 countries, which should be equal to the ratio of the price levels of the countries.

It is grounded on The Law of One Price, which states all the identical goods  have the same price.

As the purchasing power of the currency which sharply decrease because of hyperinflation, that currency will be depreciated against the stable currencies.

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Which of the following management responsibilities often involves evaluating the results of operations against the​ budget?
gayaneshka [121]

Answer: (C) Controlling

Explanation:

 The controlling is one of the most important function in the management as it involves proper planning, directing and the organizing all the function in the system.

 The main objective of the controlling is that it helps in evaluating the management process and also helps in the error checking in order to taking the various types of decision for the correction purpose.

 According to the given scenario, the controlling is one of the management responsibility that involve against the given budget for the purpose of evaluation in an organization.

 Therefore, Option (C) is correct.

3 0
3 years ago
Adam Smith used the “invisible hand” as a metaphor for the forces that balance a free market. What might be a good metaphor for
7nadin3 [17]
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5 0
3 years ago
At their regular monthly meeting, a group of local brokers agrees that the introduction of "discount brokerages" in their area w
steposvetlana [31]

Answer:

would be considered collusion.

Explanation:

Collusion refers to an illegal agreement between two or more businesses that decide to cooperate together by setting prices or production quotas. This businesses should naturally compete against each other, not team up to charge higher fees. Collusion is illegal because it leads to unfair market advantages because they negatively affect competition.

8 0
3 years ago
Assume the following sales data for a company: 2015 $910,000 2014 $770,000 2013 700,000 If 2013 is the base year, what is the pe
Sindrei [870]

Answer:

The percentaje increase in sales is 10%

Explanation:

To calculate the percentage increase in sales from 2013 to 2014 yo need to calculate the differential in sales from year to year using 2013 as a base.

You need to use the following formula:

Sales differential: [(year1-year0)/year0]*100

In this exercise:

Sales differential= [(770-700)/700]*100=10%

2014 sales increased by 10% compared to 2013 sales.

3 0
3 years ago
Read 2 more answers
On December 31, 2019, Spearmint, Inc., issued $450,000 of 9 percent, 3-year bonds for cash of $461,795. After recording the rela
cluponka [151]

Answer:

Interest expense    18,284.17  debit

Premium on BP        1,965.83 debit

        Cash                                 20,250 credit

Explanation:

procceds 461,795

face value 450,000

premium on bonds payable 11,795

As the cash received exceed the face value then, the bonds were isued at premium.

This will be amortized over the bonds life

3-year bonds with semiannual payment: 6 payment in total

amortization per payment:

11,795 / 6 = 1.965,83

The will post:

the cash disbursement in favor of the bondholder:

450,000 x 9%/2 =  20,250

amortization             (1,965.83)

interest expense:    18.284,17‬

3 0
3 years ago
Read 2 more answers
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