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liq [111]
3 years ago
10

Until August 1971, industrialized countries around the world maintained a fixed exchange rate of their currencies with the US do

llar, which was linked to gold. The gold standardized system was called the Bretton Woods Fixed Exchange Rate System. This system collapsed in 1971, and since then, the dollar has not been linked to gold.
Based on your understanding of the international monetary system, complete the following statements:

• A ________ exchange rate is the quoted price for a unit of foreign currency to be delivered at a specified date in the future.

• The government does not set a ________ exchange rate, which means that supply and demand in the market determine the currency’s value.

• When American customers import more from Europe than they export to Europe, the euro_______ relative to the dollar.

• The __________________ of a currency refers to an increase or decrease of the stated par value of a currency whose value is fixed.

• Under a ______________ floating regime, supply and demand for the currency determine the exchange rate. Currencies under such a regime are called currencies.

• A __________ occurs when a country agrees to exchange its own currency for a specified foreign money unit at a fixed exchange rate and legislates domestic currency restrictions unless it has the foreign currency reserves to cover requested exchanges.

Options
1- Forward, spot
2- Pegged, Floating
3- appreciates, depreciates
4- devaluation or revaluation, depreciation or appreciation
5- freely, managed 6- convertible, nonconvertible
7- fixed-peg arrangement, currency board arrangement
Business
2 answers:
Alona [7]3 years ago
8 0

Answer:

Explanation:

A forward exchange rate is the quoted price for a unit of foreign currency to be delivered at a specified date in the future.

The government sets a fixed exchange rate that is allowed to fluctuate only slightly (if at all) around the par value.

When American customers import more from Europe than they export to Europe, the euro appreciate relative to the dollar.

The depreciation or appreciation of a currency refers to a decrease or increase, respectively, in the foreign exchange value of a floating currency.

Under a managed floating regime, the government plays a significant role in managing the exchange rate by manipulating the currency's supply and demand.

Currencies under such a regime are nonconvertible currencies.

Novay_Z [31]3 years ago
4 0

Answer:

Explanation:

• A forward exchange rate is the quoted price for a unit of foreign currency to be delivered at a specified date in the future.

• The government does not set a floating exchange rate, which means that supply and demand in the market determine the currency’s value.

• When American customers import more from Europe than they export to Europe, the euro depreciates relative to the dollar.

The revaluation of a currency refers to an increase or decrease of the stated par value of a currency whose value is fixed.

• Under a freely floating regime, supply and demand for the currency determine the exchange rate. Currencies under such a regime are called convertible currencies.

• A fixed-peg arrangement occurs when a country agrees to exchange its own currency for a specified foreign money unit at a fixed exchange rate and legislates domestic currency restrictions unless it has the foreign currency reserves to cover requested exchanges.

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Whispering Winds Corp. has the following transactions during August of the current year. Aug. 1 Issues shares of common stock to
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Answer:

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<u>Accounting equation:</u>

Asset + 10,800

Equity +10,800

<u>Journal entry:</u>

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  common stock   18,000 credit

Aug. 4 Pays insurance in advance for 3 months, $1,200.

<u>Accounting equation:</u>

Asset  + 1,200

Assets <u>- 1,200</u>

Net              0

<u>Journal entry:</u>

prepaid rent    1,200 debit

          cash              1,200 credit

Aug. 16 Receives $730 from clients for services rendered.

<u>Accounting equation:</u>

Asset  + 730

Equity +730

<u>Journal entry:</u>

cash       730 debit

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Aug. 27 Pays the secretary $580 salary

<u>Accounting equation:</u>

Asset  - 580

Equity - 580

<u>Journal entry:</u>

salaries expense  580 debit

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Explanation:

We need to disclose how the impact in the accounting equation and the journal entry should be done:

Aug 1st the common stock is an equity account that is increasing

we receive cash that is an asset

August 4th we are using our cash to pay in advance the rent.

this gives a right to use the rental space for 3-months thus, it is not an expense is a new asset. There is no change in the accounting equation only the composition of assets changed.

August 16th we recognize earnings through revenues account this increases the equity of the company as well as assets.

August 27th in this case we pay the salaries which are an incurred cost, therefore, expense. This decreases equity.

We also use cash making assets to decrease as well.

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Answer:

The absorption approach

Explanation:

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Here, the absorption refers to incurred expenditure by the residents who are domestic on the goods and services.

Hence, according to the given situation, the appropriate option is absorption approach

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