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3 years ago

What gives commodity money its value

Business

2 answers:

Anton [14]3 years ago

6 0

<u>The type of material with which it is made gives the commodity money its value. </u>

Further Explanation:

Commodity money:

Commodity money is money that can be defined by the value of any commodity. It is the oldest form of money. Commodity money is treated as a means of exchange for purchasing and selling of products. Commodity money has its intrinsic value, which means if the commodity has no value, but it can be used as a means of exchange.

Some of the examples of commodity money are gold, silver, copper, and many more were used as a means of the exchange earlier.

Commodity money was used in ancient times when there was no paper or plastic money. People used to purchase commodities in exchange for other commodities like,for example, apples were exchanged by copper commodity money. This was done earlier, and this practice was followed.

Thus, the commodity money has its value like fiat, which has no value, but it is being recognized by the government authority so, it has its value.

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Answer Details:

Grade: High School

Chapter: Commodity money

Subject: Economics

Keywords:

What gives commodity money its value, the type of material with which it is made.

brilliants [131]3 years ago

5 0

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

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Orders for clothing from a particular manufacturer for this year's Christmas shopping season must be placed in February. The cos

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Based on the concept of expected value, the units that the company should order to meet February demand is <u>57 units.</u>

<h3>What is expected value?</h3>

In mathematics under the probability distribution theory, the expected value is the weighted average of possible values of some random variables. The weights are based on the theoretical probabilities of the variables.

<h3>Data and Calculations:</h3>

Cost per unit = $20

Selling price per unit = $50

<h3>Projected Demand</h3>

Demand Units Probability Expected Demand Units

1. 50 units 40% 20 units (50 x 40%)

2. 60 units 50% 30 units (60 x 50%)

3. 70 units 10% 7 units (70 x 10%)

Total expected demand units = 57 units

Thus, the expected demand in February is <u>57 units</u>.

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3 years ago

esse Pinkman is thinking about trading cars. He estimates he will still have to borrow $31,000 to pay for his new car. How larg

MA_775_DIABLO [31]

Answer:

Jesse's monthly car loan payment has to be $2,716.75.

Explanation:

Jesse's monthly car loan payment can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value or amount to borrow = $31,000

P = Monthly car loan payment = ?

r = Monthly interest rate = APR / Number of months in a year = 9.4% / 12 = 0.094 / 12 = 0.00783333333333333

n = Number of months = Number of year * Number of months in a year = 1 * 12 = 12

Substitute the values into equation (1) and solve for P, we have:

$31,000 = P * ((1 - (1 / (1 + 0.00783333333333333))^12) / 0.00783333333333333)

$31,000 = P * 11.4106954292971

P = $31,000 / 11.4106954292971 = $2,716.75

Therefore, Jesse's monthly car loan payment has to be $2,716.75.

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3 years ago

Alexis want to buy a house in 5 years. She wants to save $75,000 over the next five years for a down payment. If she can earn an

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Answer:

the monthly payment is $994.38

Explanation:

For computing the deposit amount made in equal payment for the next five years we need to apply the PMT formula i.e. to be shown in the attachment below:

Given that,

Present value = $0

Future value or Face value = $75,000

RATE = 9% ÷ 12 = 0.75%

NPER = 5 years × 12 = 60 years

The formula is shown below:

= PMT(RATE;NPER;PV;-FV;type)

The future value come in negative

So, after applying the above formula, the monthly payment is $994.38

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4 years ago

To help you reach a $5,000 goal in five years from now, your father offers to give you $500 now. You plan to get a part-time job

elena55 [62]

Answer:

He needs to deposit each year $747.38

Explanation:

Giving the following information:

To help you reach a $5,000 goal in five years from now, your father offers to give you $500 now. You plan to get a part-time job and make five additional deposits, one at the end of each year for 5 years. Your first deposit will be made at the end of the first year. The money is deposited in a bank that pays 7% interest.

First, we need to calculate the final value of the first $500 that the father gave him:

FV= PV*(1+i)^n

FV= 500*(1.07)^5=

FV= 701.28

Now, we have to calculate the annual deposit required:

Difference= 5,000 - 701.28= 4,298.72

We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (4,298.72*0.07)/[(1.07^5)-1]

A= $747.38

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3 years ago

Part S51 is used in one of Haberkorn Corporation's products. The company makes 12,000 units of this part each year. The company'

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Answer:

($149,800)

Explanation:

The computation is shown below:

In case of making cost, the total cost is

= (Total number of units made × Direct material per unit + Direct labor per unit + Variable manufacturing overhead per unit + Supervisor salary per unit )+ Allocated general overhead

= (12,000 units × $6.30 + $5.70 + $4.80 + $7) + $17,000

= 12,000 units × $23.8 + $17,000

= $302,600

And, the buying cost is

= 12,000 units × $37.70

= $452,400

so the financial disadvantage is

= $302,600 - $452,400

= ($149,800)

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3 years ago