Suppose the exchange rate is 90 yen per US dollar and the united states wants to keep the exchange rate at a target rate of 90 yen per US dollar. if the demand for US dollars , the fed <u>sells dollars to lower the exchange rate.</u>
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When rate of exchange changes, the worth of 1 currency can go up whereas the worth of the opposite currency can go down. Once the worth of a currency will increase, it's aforementioned to own appreciated. On the opposite hand, once the worth of a currency decreases, it's aforementioned to own depreciated.
When a country's rate of exchange will increase relative to a different country's, the value of its merchandise and services will increase. Ultimately, this will decrease that country's exports and increase imports.
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It will take 32.55 months for the account to be paid off.
In this question, we have r = 1.40%, PMT = $500 and Present Value = $13,000.
We can use the nper formula in Excel to arrive at the answer.
The formula in Excel is : =nper(rate, pmt, pv,[fv],[type])
When we substitute the values in the question, the nper formula looks like this:
=NPER(0.014,500,-13000)
We enter the present value of the amount outstanding as a negative value, since excel considers the present value as an outflow (expense).
Answer: (A) The velocity of money increased this year
Explanation:
First of all, the question says: "which of the following can be most reasonably inferred from THE ABOVE INFORMATION?"
"Above information" here refers to:
"Inflation rate turned out to exceed 4% in the current year, DESPITE Real GDP growth being at the estimated level of 2% AND money supply growth being at the restricted level of 6%"
So why did inflation growth rate still exceed money supply growth rate and real GDP growth rate?
Answer: the velocity of money increased in the current year. Velocity of money is the speed with which money is exchanged in the economy. The fact that the real value of this currency has dropped significantly (due to significant rise in inflation) made individuals lose interest in having a bulk of the currency. Hence, they quickly spend it once it gets to their hands (e.g. as disposable income) and this in turn causes inflation rate to rise.
Answer: A firm will shut down in the short run if the total revenue that it would get from producing and selling its output is less than its C. variable costs.
Explanation: A variable cost is a cost that will vary depending on the level of output that is needed. If more units of an item are needed, the variable costs will likely rise whereas if the product numbers go down, they will too. A variable cost changes and a fixed cost stays the same regardless of the production amount.
Answer:
C. Cash flow from operating activities has decreased relative to net income.
Explanation:
As we know that
Operating activities involves those activities that impact the after-net income working capital. This will subtract the rise in current assets and a reduction in current liabilities, while adding the decline in existing assets and a rise in current liabilities.
It will adjust some adjustments in working capital. In addition, the depreciation expenses are applied to the net profit and the loss on the selling of assets is added, while the gain on the sale of assets is deducted
Hence, the C option is correct