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4 years ago

One reason that some central banks try to control exchange rates is that doing so helps control inflation.A. TrueB. False

Business

1 answer:

vovikov84 [41]4 years ago

3 0

Answer:

A. True

Explanation:

The central bank (reserve bank, monetary authority) is the institution responsible for the monetary policy of a country or group of countries. The main purpose of the central bank is to maintain the stability of the currency and the money supply. However, central banks also have duties such as being the last credit authority of the banking sector and controlling the interest rate. In addition, the central bank may have powers, such as supervising banks and other financial institutions, against negligence and fraud. Central banks play the role of banks for private banks and the government of the country. Process checks and lend to members. Central banks keep their foreign currency in foreign currency reserves. These resources are used to fluctuate exchange rates. Usually they add dollars or euros in order to match their currencies. This is said to be strong and helps exporters keep their prices competitive. Central banks also regulate exchange rates as a way of controlling inflation. They buy and sell large quantities of foreign currency for supply and demand.

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Suppose that the market can be described by the following three sources of systematic risk with associated risk premiums.Factor

Lerok [7]

Answer:

The equilibrium rate of return on this stock using the APT is 19.80%.

Explanation:

According to given data described in the question, In order to calculate the the equilibrium rate of return using the APT, we would have to use the following formula:

E(rj) = rf + bj1RP1 + bj2RP2 + bj3RP3 + bj4RP4 + ... + bjnRPn

Therefore, Equilibrium rate of return = 8% + 0.7*8%+0.4*5%+0.6*7%

= 19.80%

The equilibrium rate of return on this stock using the APT is 19.80%.

6 0

3 years ago

Last semester, Brita bought her textbooks over the Internet and saved a considerable amount of money. Classes start in a few day

Dmitriy789 [7]

Last semester, Brita bought her textbooks over the Internet and saved a considerable amount of money. Classes start in a few days, and she needs to decide right away how and where to purchase her books. Brita will most likely engage in "limited problem solving" process.

<h3>What is limited problem solving process?</h3>

Limited issue solving is another sort of consumer problem-solving that consumers employ when they need information about unknown brands in well-known product categories or when they make sporadic purchases of goods; it takes a fair amount of time for information collecting and consideration.

The characteristics of limit solving process are-

Limited issue solving is employed when consumers seek information about a new brand within a well-known product category or when they occasionally purchase products.
When buying a new, expensive, or infrequently purchased goods, consumers engage in lengthy problem solving.
Possibly when you need to find out information about an unusual brand in a well-known product area, takes a fair amount of time to gather information.
Clothing is one example where it is known the product class but not the brand.

Therefore, in the given case- Brita lacks the time to thoroughly consider all of his alternatives. Additionally, he will likely follow suit this time around given his recent success purchasing books online (unless he waited too long and cannot receive his books in time).

To know more about steps in the problem solving process, here

brainly.com/question/10708306

#SPJ4

6 0

2 years ago

If Korea is capable of producing either shoes for soccer balls or some combination of the two then a. Korea should specialize in

Kruka [31]

Question:

If Korea is capable of producing either shoes or soccer balls or some combination of the two then a. Korea should specialize in the product in which it has an absolute advantage.

b. It would be impossible for Korea to have an absolute advantage over another country in both products.

c. Korea is efficient in the production of both goods.

d. Korea's opportunity cost of shoes is the inverse of its opportunity cost of soccer balls.

Answer:

d. Korea's opportunity cost of shoes is the inverse of its opportunity cost of soccer balls.

Explanation:

Opportunity cost is defined as the cost of choosing or picking particular option or alternative over another option or alternative.

In question, we are told that Korea is capable of producing either shoes or soccer balls or some combination of the two.

Therefore Korea would have to make a list of priorities also know as alternatives or options, to decide if

a. they would produce shoes,

b. or soccer balls

c. or a combination of both shoes or soccer balls.

This process described here is the process of Opportunity cost. Korea would then weigh their options and choose which is better for them either based on profit or any other reason.

Hence, Korea's opportunity cost of shoes is the inverse of its opportunity cost of soccer balls.

7 0

3 years ago

Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 150 employees and occupies 44,000

Sedaia [141]

Answer:

A) $48,000

Explanation:

Assembly Painting Total

150 employees 100 employees 250 employees

44,000 square feet 36,000 square feet 80,000 sq. feet

Administration expenses $80,000

= 150 x $320 = $48,000 = 100 x $320 = $32,000

Maintenance expenses $100,000

= 44,000 x $1.25 = $55,000 = 36,000 x $1.25 = $45,000

administration expenses = $80,000 allocated based on workers, $80,000 / 250 employees = $320 per employee

maintenance expenses = $100,000 allocated based on square feet, $100,000 / 80,000 sq. feet = $1.25 per sq. feet

7 0

3 years ago

Some of the ledger accounts for the Sanderson Hardware Company are listed below. For each of the October 2021 transactions numbe

77julia77 [94]

Answer:

1. Paid a cash dividend.

Account Debited: Retained earnings

Account Credited: Cash

2. Paid rent for the next three months.

Account Debited: Prepaid rent

Account Credited: Cash

3. Sold goods to customers on account.

Account Debited: Account receivables

Account Credited: Sales revenue

4. Purchased inventory on account.

Account Debited: Inventory

Account Credited: Accounts payable

5. Purchased supplies for cash.

Account Debited: Supplies

Account Credited: Cash

6. Paid employees wages for September.

Account Debited: Wages payable

Account Credited: Cash

7. Issued common stock in exchange for cash.

Account Debited: Cash

Account Credited: Common stock

8. Collected cash from customers for goods sold in 3.

Account Debited: Cash

Account Credited: Account receivables

9. Borrowed cash from a bank and signed a note.

Account Debited: Cash

Account Credited: Notes payables

10. At the end of October, recorded the amount of supplies that had been used during the month.

Account Debited: Supplies expenses

Account Credited: Supplies

11. Received cash for advance payment from customer.

Account Debited: Cash

Account Credited: Unearned revenue

12. Accrued employee wages for October.

Account Debited: Wages expenses

Account Credited: Wages payable

4 0

3 years ago