Answer:
59% - a)increase - b)decrease
Explanation:
First of all, we should say that the real exchange rate is calculated by multiplying the nominal exchange rate for the price index and then divide it by the price index of the other country. In another language, using this case as the example, the first nominal exchange rate is 50, as you need 50 rupees to buy 1 dollar. So to calculate the real exchange rate you need to multiply 50 by 100 (the price index of USA) and then divide it by 100 (the price index of India). Note that both price indexes are 100, just a coincidence for making easier the question. Result: 50.
Then we calculate the next real exchange rate: multiply 60 (the new nominal exchange rate) by 106 (the new US price index) and divide by 80 (the new India price index). This throws a result of 79,5. We see a 29,5 increase, and 29,5 represents 59% of 50 (the initial real exchange rate).
Then both questions is more common sense than the reading of the results we just calculated. For example, nominal exchange rate changed from 50 to 60, so the people in India will now have to collect 10 more rupees to buy the same dollar. Let's suppose a pair of shoes in USA costs 40 dollars. Before, Indians needed 2000 rupees to buy it. Now they will need 2400 rupees... it will be more expensive. Plus, the prices of USA had gone up 6%, which means the pair of shoes will now cost 42,4 dollars... even more expensive! As products in USA are more expensive, we can expect that India's consumption of American goods will decrease (law of demand).
With the American consumption of Indian goods happens the opposite, the goods in India became cheaper (price index has fallen), and for the Americans, the same dollars they had will buy more rupees when the exchange rate changed to 60.
Answer:
Correct answer is (d). They target their products at "everybody" or the "average customer."
Explanation:
Every sales-oriented firms want more customers and want to make more profit by selling to as many customers as possible, this makes them to seek and target their products to every potential buyers and other average customers available.
Answer:
Given that,
Total prepaid insurance = $6,700
Monthly insurance:
= Total prepaid insurance ÷ 4 months
= $6,700 ÷ 4 months
= $1,675
Insurance expense for two months:
= $6,700 - $1,675
= $5,025
Therefore, the adjusting entry required on December 31 is as follows:
Insurance expense A/c Dr. $5,025
To Prepaid insurance $5,025
(To record the adjusting entry for the insurance)
Answer:
Specializes in bringing buyers and sellers together.
Explanation:
A broker can be defined as an individual or a firm that acts as a middleman between the buyers and the sellers. A broker is a licensed agent that is permitted to purchase or sell stocks and other investments.
A broker carries out the role of a trusted intermediary in various financial transactions. Brokers receive their commissions through a percentage gotten from the purchase or sale of an asset or stock.
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
PV= $7,800
Regency Bank:
i= 0.5 percent per month
n= 19*12= 228
King Bank:
i= 6 percent annually
n=19
To calculate the final value of each bank we need to use the following formula:
FV= PV*(1+i)^n
Regency bank:
FV= 7,800*(1+0.005)^228= $24,319.61
King bank:
FV= 7,800*(1.06)^19= $23,599.68
