"A cross-hedging strategy is most effective with currencies that are <u>highly positively correlated</u>; currency diversification is most effective with currencies that are <u>not highly correlated.</u>"
<u>Explanation:</u>
Cross hedging is a idea that is used to mange risk. This is done by investing in two securities. Those two securities are correlated and that too positively. Which means their prices goes in the identical direction. It helps in minimizing the risks associated.
So,A cross hedging strategy is most efficient when currencies are positively correlated,
Currency diversification is a strategy where more than one currency is used in investment. It leads to less exchange rate risk. This strategy is most effective with currencies that are not highly correlated. Which means increase in one currency causes no increase in other currency.
Answer:
Dr. Cash $124,200
Dr. Accumulated Depreciation $118,800
Dr. Loss on Disposal $16,200
Cr. Equipment $259,200
Explanation:
Depreciation is the recording of asset expense due to its use. It is due to use of fair value of the asset after use. The expense value reduces the asset value over useful life period.
As per given data
Cost of Asset = $259,200
Useful life= 5 years
Salvage Value = $43,200
Asset is purchased on January 1, 2020 and on September 30, 2022 depreciation of only 2 years and 9 months has charged.
Depreciation per year = (Cost of Asset - Salvage Value) / Useful life = ($259,200 - $43,200) / 5 = $43,200
Accumulated Depreciation as on September 30, 2022 = ($43,200 x 2) + $43,200 x 9/12 = $118,800
Book value of the asset is the net of accumulated depreciation of the asset. The accumulated depreciation on September 30, 2022, is as follow:
Net Book value of Asset = 259,200 - $118,800 = $140,400
Answer:
a higher price and produce a smaller output than a competitive firm
Explanation:
A monpolistically competitive firm is a firm that :
1. Sells differentiated products from other firms in the industry.
2. Has many buyers and sellers
3. Is a price maker
4. Has no barrier to entry or exist of firms
An example of a monpolistically competitive firm is a resturant.
A competitive firm is a firm that:
1. Sells identical goods with other firms in the industry.
2. Is a price taker . Prices are set by forces of demand and supply
3. Has many buyers and sellers
4. There are no barriers to entry or exist of firms.
When a monopolistic and competition firm are faced with the same unit cost, a monopolistic firm would aim to earn profit by increasing its price and reducing the quantity produced.
While a perfect competition would sell at the price set by the forces of demand and supply. The firm can increase the quantity produced in order to increase revenue.
A monopolistic firm is able to charge a higher price for its products while a perfect competition isn't.
The answer to the given question above would be option C. The one that is most <span>essential to any definition of marketing is CUSTOMER RELATIONSHIPS. Hope this answers your question. Let me know if you need more help next time. Have a great day!</span>
