All categories

3 years ago

In a floating exchange rate system, a current account deficit is likely to be corrected by :

Business

1 answer:

antiseptic1488 [7]3 years ago

3 0

Answer:

a. a depreciation of the home currency

Explanation:

Floating exchange rate system is a system in which the exchange rates of any currency depends upon the forex market, basically the supply and demand force of the country in international trade.

Depreciation in home currency will make it cheaper for the country top export, as less payment need to be made for same goods by other country if the home country exports.

Imports will turn expensive, which shall decline imports.

Accordingly receipts will increase and payments will decrease, which shall result in re framing current account and the deficit shall be decreased and might be reversed into surplus.

You might be interested in

An economy has a monetary base of 1,000 $1 bills. Calculate the money supply in scenarios a - d. Then answer part e. a. All mone

natka813 [3]

Answer:

a. If all money is held as currency then the banks create no additional money and money supply is = $1,000

b. If all money is in banks but the banks are not loaning it out as they are keeping it in reserves, no loans will be created. Supply is still $1,000.

c. The total money is the amount of deposits multiplied by the money multiplier.

Money Multiplier = 1/required reserve

= 1/0.2

= 5

Supply = 1,000 * 5

= $5,000

d. With equal amounts held as currency and demand deposits, the money multiplier will be;

= $\frac{1 + Currency deposit ratio}{ Reserve requirement + Currency deposit ratio}$

Currency deposit ratio is 1 as the ratio to demand deposits is equal which = 1.

= $\frac{1 + 1}{1 + 0.2}$

= 1.67

Money supply = 1,000 * 1.67

= $1,670

e. If the Central bank increases the money supply by 10% then the monetary base would increase by;

= 10% * 1,000

= $100

6 0

3 years ago

Producers are driven by

Reil [10]

The correct answer is option c)

5 0

3 years ago

Dditional Time Used: 07 minutes, 16 seconds.

Sedaia [141]

Answer:

the answer is c...employees need 2 b compensated 4 a job that is satisfactory 2 a company.., this position to workers, relays a feeling of "job well done"

4 0

3 years ago

The HR department is trying to fill a vacant position for a job with a small talent pool. Valid applications arrive every week o

Readme [11.4K]

Answer:

Type 1 decision error cost and Type 2 decision error cost

Explanation:

Type 1 decision error cost has to do with recruiting the wrong candidate or person specification for the job, type 1 error are expensive to the organization and frustrating to the employees. Type 2 decision error cost has to do with the opportunity cost forgone, when the right candidate which could have been hired, was not hired.

The CEO is likely to discover the Type 1 decision error cost

8 0

3 years ago

Rory Company has a machine with a book value of $75,000 and a remaining five-year useful life. A new machine is available at a c

Alborosie

Answer: $7,500

Explanation:

In calculating the Incremental income we will add the amount of variable Manufacturing costs Rory Company will save as well as the income they will get from selling the old machine and then subtract the cost price of the new machine.

Starting off we will calculate the amount of savings they will make by using the new machine,

= $12,000 x 5 years

= $60,000

Calculating the Incremental income therefore we have,

= 60,000 + 60,000(from selling old machine) - 112,500 (cost of new machine)

= $7,500

The incremental income of buying the new machine is $7,500.

If you need any clarification do comment.

5 0

2 years ago