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gogolik [260]
3 years ago
15

Roll over each item on the left to read the description. Identify whether each of the statements is an argument for or an argume

nt against a specific exchange rate regime, then place each item in the correct place on the chart.
2/5 points awarded Government adjusts Fluctuation with limits Scored Reduces uncertainty Argument for Argument Against Market-based Floating exchange rate Uncertainty Market-based Unknown elements Continual government intervention Fixed exchange rate No uncertainty Continual government intervention Managed-float Difficult Fluctuation with limits Difficult Pegged exchange rate Limited options Government adjusts Limited options Target Zone Reduces uncertainty Unknown elements No uncertainty

Business
1 answer:
Naya [18.7K]3 years ago
4 0

Answer:

<u>Floating exchange rate</u>

Here the market decides the value of the currency as it trade freely in the market based on supply and demand.

Argument For;

Market Based - It is market based therefore it reflects the true value of the currency.

Argument Against;

Uncertainty -  As it trades according to the whims of supply and demand, telling which direction it will go in terms of value is a difficult undertaking therefore financial decisions based on such are riskier.

<u>Fixed exchange rate</u>

Here the value of the currency is fixed either to the value of another currency or to the price of gold.

Argument For;

No Uncertainty -  As the currency is tied to another currency which is usually more stable or gold, the rate of the currency is more predictable.

Argument Against;

Unknown Elements

<u>Managed float</u>

In this exchange rate regime, the Central bank of a country intervenes in the Foreign exchange market to push or pull the currency in the direction that it prefers.

Argument For;

Government intervention - The Government Intervention ensures that the currency's value remains stable as well as allowing the Central bank to maintain a good balance of payments.

Argument Against;

Difficult - Maintaining the currency within the band preferred in a difficult undertaking that requires constant intervention in the Forex market.

<u>Pegged exchange rate</u>

The Central bank in this instance pegs the currency to a basket of currencies after setting an exchange rate it would prefer and then intervenes in forex market to keep it that way.

Argument For;

Reduces uncertainty - The movement of the currency is more predictable due to it being pegged to a basket of currencies.

Argument Against;

Continual government intervention - As this requires the currency to remain at a certain value, the government will keep intervening to ensure that it stays at that exact level.

<u>Target zone</u>

Here the Central Bank allows the currency to fluctuate on the market albeit with limits placed on how much it can do so.

Argument For;

Fluctuation with limits - By combining fixed regimes with floating regimes, the currency can maintain a semblance of true value whilst still be less uncertain.

Argument Against;

Limited options.

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anastassius [24]

Answer:

$2,668.67

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Cash flow in year 0 =  $-28,000

Cash flow in year 1 =  $12,000

Cash flow in year 2 =  $13,000

Cash flow in year 3 =  $12,000

I = 10%

NPV = $2,668.67

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

7 0
3 years ago
Why are people engaged in business? Explain.​
Crank

Answer:

The reason why people get engaged in business is because they become more productive and people engage in business to make money and get returns on investment.

Explanation: This is the answer I hope this helped you out.

3 0
2 years ago
ou wish to retire in 20 years, at which time you want to have accumulated enough money to receive an annual annuity of $32,000 f
AleksAgata [21]

Answer:

Annual contributions to the retirement fund will be $6,347.31

Explanation:

First find the Present Value of the Annuity giving payments of $32,000 annually for 25 years at the rate of 10%.

Using a Financial Calculator enter the following data

PMT = $32,000

P/y = 1

N = 25

R =  10%

FV = 0

Thus, the Present Value, PV is $290,465.28

At the time of retirement (in 20 years time) the Value of the annuity fund is $290,465.28.

Next we need to find the Payments PMT to reach this amount in 20 years time at the interest rate of 8%

Using a Financial Calculator enter the following data

FV = $290,465.28

N = 20

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Thus, the Payments, PMT required will be $6,347.3080

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Annual contributions to the retirement fund will be $6,347.31

3 0
3 years ago
Peters Manufacturing Company has the following data at June 30, 2019:
nignag [31]

Answer:

Gross Profit                      $ 74,000

<u>Cost of Goods sold                                   $ 506,000</u>

Explanation:

Peters Manufacturing Company

Income Statement

June 30, 2019

<u>Sales                                                 $580,000</u>

Total manufacturing costs 430,000

Add Work in process inventory, June 1 18,100

Cost of Goods Available for Manufacturing  548,100

Less Work in process inventory, June 30 30,400

Cost Of Goods Manufactured  517,700

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Cost Of Goods Available for Sale  561,200

Less Finished goods inventory, June 30 55,200

<u>Cost of Goods sold                                   $ 506,000</u>

Gross Profit                      $ 74,000

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2 years ago
The average total cost curve and the marginal cost curve are related in that:
Serga [27]

Answer:

C. the MC curve passes through the minimum point of the ATC curve.

Explanation:

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Whereas Average Total Cost is a U shaped curve, it basically starts from a high point and then tends to decrease as the increase in number of units with constant fixed cost tends to decrease the average, but ultimately after it reaches its lowest point it tends to increase because now to produce units, there is extra cost required.

The Marginal Cost Curve touches the Average Total Cost curve at its lowest.

3 0
2 years ago
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