Answer:
59% - a)increase - b)decrease
Explanation:
First of all, we should say that the real exchange rate is calculated by multiplying the nominal exchange rate for the price index and then divide it by the price index of the other country. In another language, using this case as the example, the first nominal exchange rate is 50, as you need 50 rupees to buy 1 dollar. So to calculate the real exchange rate you need to multiply 50 by 100 (the price index of USA) and then divide it by 100 (the price index of India). Note that both price indexes are 100, just a coincidence for making easier the question. Result: 50.
Then we calculate the next real exchange rate: multiply 60 (the new nominal exchange rate) by 106 (the new US price index) and divide by 80 (the new India price index). This throws a result of 79,5. We see a 29,5 increase, and 29,5 represents 59% of 50 (the initial real exchange rate).
Then both questions is more common sense than the reading of the results we just calculated. For example, nominal exchange rate changed from 50 to 60, so the people in India will now have to collect 10 more rupees to buy the same dollar. Let's suppose a pair of shoes in USA costs 40 dollars. Before, Indians needed 2000 rupees to buy it. Now they will need 2400 rupees... it will be more expensive. Plus, the prices of USA had gone up 6%, which means the pair of shoes will now cost 42,4 dollars... even more expensive! As products in USA are more expensive, we can expect that India's consumption of American goods will decrease (law of demand).
With the American consumption of Indian goods happens the opposite, the goods in India became cheaper (price index has fallen), and for the Americans, the same dollars they had will buy more rupees when the exchange rate changed to 60.
<span>This office manages the country's money. The budget is important because all of the government programs are given a certain amount of money in it. It must be followed so we have enough money to do what is needed in this country. Welfare, security and other important programs are in the budget.</span>
Answer:
A,. 13.33%.
Explanation:
Return on Investment (ROI) which gives the efficiency of a particular investment
We were given invested capital amounted as $6,000,000, and operating expenses as $5,000,000
We can calculate net income by substracing equal sales revenue from operating expenses
net income can be calculated as = ($5000000-$420000)
= $800000
ROI can be calculated as
net income/Capital investment
$800000/$6000000
=. 13.33%.
Answer:
The answer is B In horizontal percentage analysis, a financial statement line item is expressed as a percentage of the previous balance of the same item.
Explanation:
Horizontal analysis of a balance sheet shows changes in individual assets, liability, and equity items over time.
Horizontal analysis of an income statement compares the amount of each item on a current income statement with the same item on an earlier income statement.
Horizontal analysis is used in financial statement analysis to compare historical data, such as ratios, or line items, over a number of accounting periods. Horizontal analysis can either use absolute comparisons or percentage comparisons, where the numbers in each succeeding period are expressed as a percentage of the amount in the baseline year, within the baseline amount being listed as 100%.
Answer:
B. equity financing
Explanation:
Equity financing involves giving up part of the company because it will have to be shared with the partners of the organization who are usually the investors.
