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Alexandra [31]
3 years ago
11

Assume $1 is currently equal to A$1.1024 in the spot market. Also assume the expected inflation rate in Australia is 2.8 percent

as compared to 3.4 percent in the U.S. What is the expected exchange rate one year from now if relative purchasing power parity exists?
Business
1 answer:
MatroZZZ [7]3 years ago
8 0

Answer:

Future rate(AUD/USD) = 1.0958

Explanation:

Consider the following formula to calculate the future rate

Future rate=Spot rate*((1+Quoted currency Inflation rate)/(1+Base currency Inflation rate))^time

Future rate=1.1024*((1+0.028)/(1+0.034))^1

Future rate(AUD/USD) = 1.0958

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Senator Bright, who understands economic principles, is trying to convince workers in her district that trade with other countri
tankabanditka [31]

Answer:

b) because it allows specialization, which increases total output

Explanation:

Specialization is when a nation or individual concentrates its productive efforts on producing a limited variety of goods. It oftentimes has to forgo producing other goods and relies on obtaining those other goods through trade.

5 0
3 years ago
Fedor, Inc. has prepared the following direct materials purchases​ budget: Month Budgeted DM Purchases June $ 69 comma 000 July
cricket20 [7]

Answer:

C) $77,090

Explanation:

June 69000 (40% in July, 50% in AUgust)

July 80000 (40% in August, 50% in Sepetember)

August 77500 (40% in September, 50% in October)

September 77900 (40% in October)

October 71800 (10% in October)

Total budgeted cash payments in October = 71,800 x 10% + 77,900 x 40% + 77,500 x 50% = 77,090

6 0
3 years ago
Exercise 5-10 Lower of cost or market LO P2 Martinez Company's ending inventory includes the following items. Product Units Cost
zysi [14]

Answer:

Martinez Company

Ending inventory is:

= $8,806.

Explanation:

a) Data and Calculations:

Product       Units   Cost per Unit   Market per Unit

Helmets       27             $ 55                   $ 59

Bats             20                 83                      77

Shoes           41               100                      96

Uniforms     45                 41                       41

Lower of cost or market value Valuation:

Product       Units   Cost per Unit   Market per Unit     LCM

Helmets       27             $ 55                   $ 59               $1,485

Bats             20                 83                      77                1,540

Shoes           41               100                      96               3,936

Uniforms     45                 41                       41                1,845

Total cost of ending inventory                                    $8,806

4 0
2 years ago
If Alex deposits $1,000 from her paycheck into her checking account and, at the same time, increases her credit card balance by
Marina86 [1]

Answer:

option (A) -$500; decreases by $500

Explanation:

Data provided in the question:

Amount deposited = $1,000

Increase in credit card balance = $1,500

Now,

Deposit adds to assets whereas increase in credit card balances adds to liabilities

Therefore,

Savings = Deposits - Increase in credit card balances

= $1,000 - $1,500

= - $500

Here,

negative sign depicts the decrease in wealth

Hence,

The correct answer is option (A) -$500; decreases by $500

8 0
3 years ago
You noticed that a fast food restaurant's operating cycle is 30 days. would this suggest the restaurant is selling food beyond i
iris [78.8K]

No, i will not suggest the restaurant is selling food beyond its expiration date because the operating cycle includes the average collection period which will be long if the restaurant only takes cash.

<h3>What is an operating cycle?</h3>

This refers to the number of days required for a business to receive inventory, sell the inventory and collect cash from the sale of the inventory.

The operating cycle as a financial tools plays a major role in determining the efficiency of a business.

Hence, whenever we noticed that a fast food restaurant's operating cycle is 30 days, we will not suggest the restaurant is selling food beyond its expiration date because the operating cycle includes the average collection period which will be long if the restaurant only takes cash.

Read more about operating cycle

brainly.com/question/14020000

#SPJ1

4 0
2 years ago
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