The answer to this question is <span>acceptability
The </span><span>acceptability characteristic refers to whether the currency is accepted as a medium of exchange for the transaction in the market.
Currency that has high rate of acceptability tend to be less volatile in the foreign exchange market and attract more investment.</span>
Answer:
QUESTION 1:
The horizontal axis measures an economy's real GDP- 3
QUESTION 2:
As price level rises, imports become relatively cheaper than domestically produced goods- 1
Explanation:
QUESTION 1
The horizontal axis of the aggregate demand and aggregate supply measures an economy's real GDP. The GDP is the sum of all the final goods and services produced in the economy while the vertical axis of an aggregate supply and aggregate demand diagram measures the price index level.
QUESTION 2
When domestic interest rate is low compared to foreign interest rates, domestic investors invest in foreign countries where return on investments is higher. Increased outflow of currency to foreign countries, causes a decrease in real exchange rate. This decrease, increases net exports. This then, increases aggregate demand. As the price level drops, interest rates fall, investment in foreign countries becomes increased, real exchange rate falls, net exports increases and the aggregate demand then increases.
Answer:
1. Cash in hand and at bank balance
2. Is there land and buildings available
3. Are there any accumulated debt owed by the church
4. Collections or record of church document.
Explanation:
1. Cash in hand and at bank balance. This an example of a current asset. The first question is how much does the church have as cash and bank balance. The reason is to ascertain whether the fund will be sufficient for the new building project.
2. Land and Buildings availability. This is a fixed asset. The board would enquire whether there is an already existing building or land with which to begin the building project.
3. Debt or loan owed by the church. Loan forms part of liability in a balance sheet. Another question to be asked is whether the church is indebted to a bank or financial institution. This will determine whether or not to continue with the building project.
4. Record of church document. Does the church have any existing document with which to support the new building? This is pertinent as to begin or abandon the plan to build a new church.
Answer:
Oil price
Explanation:
THe oil price effect states that when the oil price rises, most of the products that need oil to be produced or transported also will rise, and when oil price decreases most of the same products should also lower their prices, in this case gas is the one of the most related products to oil, since it is the main product of oil, and a decrease in the cost of oil will result in a direct decrease in the price of gas.
Question:
When performing capital budgeting, __________ incurred by a project are irrelevant to future investment decisions.
A) Opportunity costs
B) Depreciation
C) Sunk costs
D) Taxes
Answer:
The correct answer is C) Sunk Costs
Explanation:
Capital Budgeting is the art (most applicable to corporate persons) of planning expenditure that will be incurred in the future, especially on long term assets.
The reason you cannot factor Sunk Cost into a Capital Budget is because of its very nature.
Sunk Costs refer to monies for items that have already been expended and can never be recovered. If it can never be recovered and has <u>already</u> been incurred, it has no role to play in future considerations especially when the purpose of Capital Budgetting is considered.
The primary purpose of a Capital Budget is that it helps to further evaluate the inflow against the outflow of an investment to check whether or not the return is acceptable.
Every other option given in the question above are items that have futuristic qualities.
Cheers
