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jasenka [17]
3 years ago
8

Classify each characteristic as relating to a fixed exchange rate regime or a flexible, or floating, exchange rate regime.a. sig

nals a commitment not to engage in inflationary policiesb. provides certainty about the value of a currencyc. distorts incentives for importing and exporting goods and servicesd. enables policy makers to engage in monetary policy1. Fixed exchange rate regime 2. Flexible (floating) exchange rate regime
Business
1 answer:
marshall27 [118]3 years ago
8 0

Answer:

(A) Fixed exchange rate regime

(B) Fixed exchange rate

(C) Flexible exchange rate

(D) Flexible exchange rate

Explanation:

(A) A fixed exchange rate regime signals a commitment not to engage in inflationary policies. NOTE: Inflationary policies are a type of monetary policies (the type used to pump money into the economy). See answer (D).

(B) A fixed exchange rate regime provides certainty about the value of a currency, for example, when the exchange rate between Philippine Pesos and Arab Emirate Dollars is fixed at 10PHP - 1AED, traders in this currency will be certain that at any planning time in business, investment or consumption, 10 PHP will be equal to 1 AED.

(C) Flexible exchange rate distorts incentives for importing and exporting goods and services. What are these incentives? On the government side, it is either the revenue that government makes from import tariffs and duties OR the subsidy that government pays on exported goods. On the importer/exporter side, it is the custom duties paid by importers on imported goods AND the subsidies enjoyed by exporters on exported products. A flexible exchange rate distorts or fluctuates these incentives.

(D) Flexible exchange rate enables policy makers to engage in monetary policy. Now, monetary policy is a tool used by ministers of finance or policy makers in every country; to regulate (increase or reduce or bring back to normal) spending and investment. If the exchange rate between or among countries were fixed, monetary policies would have limited application or usefulness when implemented. A flexible exchange rate encourages and enables engagement in or use of monetary policies.

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The replacement cost of an inventory item is below the net realizable value and above the net realizable value less the normal p
Andrews [41]

Answer:

D. Replacement cost.

Explanation:

As we know that the inventory should be recorded at the cost or market value whichever is lower

Given that

Original cost is less than the net realizable value subtract the profit margin

So we assume the following figures

Original cost $10

Net realizable value 9

Replacement cost 8

NRV less normal profit margin 7

As if we compare the original cost and replacement cost so the lower value is of replacement cost

hence, the same is to be considered

Therefore the correct option is D.

4 0
2 years ago
On September 15, 2021, Oliver's Mortuary received a $7,200, nine-month note bearing interest at an annual rate of 8% from the es
Sphinxa [80]

Answer: PLease see answer below

Explanation:

Date Account title and explanation Debit Credit

Dec 31   Interest receivable                           $168  

2021             Interest revenue                                                 $168

Calculation

Interest =Principal x time x rate

= 7,200 x 8% x 3.5 /12(15th september to 31st December)

=$168

4 0
3 years ago
As winner of a breakfast cereal competition, you can choose one of the following prizes: a. $180,000 at the end of five years. b
Stolb23 [73]

Answer:

i. Discounted cashflow equations.

a.  $180,000 at the end of five years.

This is a lump sum present value/ discounted cashflow which can be calculated as;

Formula = 180,000 / ( 1 + r)^n

= 180,000/ ( 1 + 12%)^5

= $102,136.83

b. $11,400 a year forever

This is a perpetuity. The present value/ discounted cashflow of a perpetuity is calculated as;

Formula = Amount/rate

= 11,400/12%

= $95,000

c. $19,000 for each of 10 years.

This is an annuity. The formula for calculating the Present value/ discounted cashflow of an annuity is;

Formula = Annuity * [\frac{( 1 - (1 + i)^{-n} )}{i} ] where <em>i </em>is interest rate and <em>n</em> is number of periods

= 19,000 * [\frac{( 1 - (1 + 0.12)^{-10} )}{0.12} ]

= $107,354.24

d. $6,500 next year and increasing thereafter by 5% a year forever.

This is a growing perpetuity. The present value/ discounted cashflow formula is;

= Amount / ( discount rate - growth rate)

= 6,500 / ( 12% - 5%)

= $92,857.14

ii. Choose <u>$19,000 for each of 10 years</u> as it has the highest present value.

7 0
3 years ago
The year-end financial statements of Greenway Company contained the following elements and corresponding amounts: Assets = $23,0
aleksandr82 [10.1K]
The correct answer is a
5 0
3 years ago
g When a monopolistically competitive industry is in long-run equilibrium: Multiple Choice price equals marginal cost. firms ear
kozerog [31]

Answer:

price equals minimum average total cost

Explanation:

As we know that in the short run, the firms earns the economic profit but in the long run  when a new firm is entered into the indusry and there is a market share so the demand of the market is to be shared by each firm due to which the demand would be less

So this represents that price is equivalent to the average total cost

Hence, the last option is correct

8 0
3 years ago
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