Answer:
C) 1.6
Explanation:
The real exchange rate is calculated by multiplying the nominal exchange rate by the price level of the countries:
nominal exchange rate = 2 US dollars per British pound = $2/£
real exchange rate = $2/£ x (US price level / British price level) = $2/£ x 0.8 = $1.6/£
Answer: increase by $80 million, and the maximum money-lending potential of the commercial banking system will increase by $400 million
Explanation:
Based on the information given in the question, the money multiplier will be calculated thus:
Money multiplier = 1/Required reserve ratio
where,
Required reserve ratio = 20%
Money Multiplier will now be:
= 1/0.20
= 5
Therefore, the maximum money-lending potential will be:
= $80 million × 5
= $400 million
Therefore, the money supply will by $80 million, and the maximum money-lending potential of the commercial banking system will increase by $400 million
Answer: Counteroffer
Explanation: As the primary duties of Pam lies towards her clients, all her efforts should be made to make the deal favorable for her client. Pam should make a counteroffer to the buyer to make the price high enough so at least she"ll be able to ask her client for any negotiation possible. Hence counter offering the client is the best possible way for her .
2. It engages in business activities from which it may earn revenues and incur expenses.
You tell him politely to go and check his timetable/schedule