All categories

3 years ago

If a nation merges its currency with another nation to create a single currency, what must it give up?

Business

1 answer:

scZoUnD [109]3 years ago

5 0

Answer:

B, the ability to determine its own nationally-oriented monetary policy.

Explanation:

When a country merges its currency with another to form/create a single currency, the nation must give up its ability to make monetary policies with the country.

This is because the creation of a single currency has now joined both countries as one monetarily. For this reason, both nations have to come to an agreement on monetary policies that will apply in both country as soon as there is a currency merger.

Cheers.

You might be interested in

On Jan. 2, Callie Taylor invests $40,000 into the business in exchange for common stock. She journalize the transaction as follo

castortr0y [4]

Answer:

See explanation section.

Explanation:

The correct journal to record this transaction is -

Cash Debit $40,000

Common stock Credit $40,000

Note: As Callie Taylor invests the amount in exchange for common stock, An asset (cash) will be increased, and equity (common stock) will be increased. An increase in asset means debit, while an increase in equity means credit.

6 0

3 years ago

Indicate whether a debit or credit decreases the normal balance of each of the following accounts.

Alinara [238K]

Answer:

__________________Increase ___Decrease ___ Normal balance

a. Postage Expense__ Debit ______ Credit ______ Debit

b. Utilities Payable___ Credit ______Debit _______Credit

c. Prepaid Insurance__Debit ______ Credit ______ Debit

d. Janitorial Expense __Debit ______Credit ______ Debit

e. Advertising Expense Debit ______Credit ______ Debit

f. Rent Payable______ Credit ______Debit _______Credit

g. Prepaid Parking ____Debit ______ Credit ______ Debit

h. Fuel Expense ______Debit ______Credit ______ Debit

i. Accounts Receivable _Debit ______Credit ______ Debit

j. Service Revenue____Credit ______ Debit _______Credit

k. Unearned Revenue_ Credit ______ Debit _______Credit

l. Warehouse________ Debit ______ Credit _______ Debit

Explanation:

<u>Debit Balance</u>

All the Assets and Expense has the Normal debit balance that is increased by the debit entry and decreased by the credit entry.

The followings are the account with debit balances.

Expenses

a. Postage Expense

d. Janitorial Expense

e. Advertising Expense

h. Fuel Expense

Assets

c. Prepaid Insurance

g. Prepaid Parking

i. Accounts Receivable

l. Warehouse

<u>Credit Balance</u>

All the Revenue, Liabilities, and Equity accounts have the Normal credit balance that is increased by the credit entry and decreased by the debit entry.

The followings are the account with credit balances.

Liabilities

b. Utilities Payable

f. Rent Payable

k. Unearned Revenue

Revenue

j. Service Revenue

7 0

3 years ago

Suppose that you have just borrowed $250,000 in the form of a 30 year mortgage. The loan has an annual interest rate of 9% with

Oksi-84 [34.3K]

Answer:

Consider the following calculations

Explanation:

PMT(Interest_Rate/Num_Pmt_Per_Year,Loan_Years*Num_Pmt_Per_Year,Loan_Amount)

Interest_Rate = 0.09

Num_Pmt_Per_Year = 12

Loan_Years = 30

Loan_Amount = 250,000

If you input these values on a financial calculator, PMT = 2011.56

Balance of the loan at the end of 13 years = 209798.54

Interest paid in the 6th year = 21464.51

224th Payment Principal = 722.70

7 0

3 years ago

How can exchange rates change to reduce the wage differential between countries

andrey2020 [161]

Answer:

The exchange rate is the value for which one currency can be exchanged for another. Thus, for example, 20 Mexican pesos are needed to acquire an American dollar.

Technically, it could happen that a country changes its exchange rate with respect to a hard currency (such as the Dollar or the Euro) through fixed exchange rates, in order to increase the value of the salaries of its citizens, measured in international currencies. For example, if the Mexican government fixed a parity between the dollar and the peso of value 1 to 1, the minimum wage of Mexicans would go from being worth $ 215 to multiplying by 20, that is, to $ 4,300.

Now, in practice, this situation is practically impossible, since it would imply a monetary modification in the country that makes the adjustment, since otherwise it would imply an unprecedented inflationary peak.

4 0

3 years ago

The Bert Corp. and Ernie, Inc., have both announced IPOs. You place an order for 1,150 shares of each IPO. One of the IPOs is un

Tems11 [23]

Answer:

The Bert Corp. and Ernie, Inc.

The profit expected is:

= $2,875.

Explanation:

a) Data and Calculations:

The Bert Corp. Ernie, Inc.

IPO order placed 1,150 shares 1,150 shares

Underpriced by $18.00

Overpriced by $6.50

Profited expected $10,350 -$7,475

Net profit = $2,875 ($10,350 - $7,475)

b) The profit expected is generated from the underpriced stock. This profit is reduced by the increased cost incurred on the over-priced stock. Therefore, the net profit is the difference between the profit and the additional cost incurred.

8 0

3 years ago