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.
Place utility is created by making a product available at a location where customers wish to purchase it.
Answer:
Generally real estate liens are prioritized following a temporal order, from first to last. This applies to all liens except taxes. Taxes are always first and they are collected before any other lien in the event of a foreclosure.
In this case, the following priority would go to the mechanic's lien from the the general contractor (as a result from court order), then the mortgage, and finally the other creditors.
Answer:
If the Fed conducts an open market purchase by specifically buying government securities from the Bank, banks' reserves increase and the quantity of money increases.
Explanation:
The Federal Reserve (Fed) buys and sells government securities to control the money supply. This activity is called open market operations (OPO). By buying and selling government securities in the free market, the Fed can expand or contract the amount of money in the banking system and pursue its monetary policy.
To increase the money supply, the Fed will purchase bonds from banks to inject money into the banking system.
The Federal Reserve's latest effort to calm the financial system — pumping $100 billion a day into trillion-dollar funding markets — is intended to be a temporary role, born of necessity. But it may turn out to be a significant expansion of the Fed's footprint.
Answer:
If the effective tax rate increases then the net savings coming from investments will get lowered as a result the investment will have higher payback period (The increase in effective tax rate would lower demand of the product which means there is decline in net saving arising from the sale of the product). Likewise this decrease in annual net savings will also decrease the internal rate of return which shows that their are increased chances of project rejections. The NPV method is based on cash flows and relevant costing just like IRR and payback method but the only difference is that it assumes that the cash earned would be reinvested at cost of capital. The NPV will also decrease due to increased effective tax rate.
