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goldenfox [79]
3 years ago
7

Under a fixed exchange rate system, the government bears the responsibility to ensure that the BOP is near zero. If the sum of t

he current and capital accounts do not approximate zero, the government is expected to intervene in the foreign exchange market by buying or selling official foreign exchange reserves. If the sum of the first two accounts is GREATER THAN ZERO, a ________ demand for the domestic currency exists in the world. To preserve the fixed exchange rate, the government must then intervene in the foreign exchange market and ________ domestic currency for foreign currencies or gold so as to bring the BOP back near zero.'
A. deficit; buy
B. deficit; sell
C. surplus; buy
D. surplus; sell
Business
1 answer:
xxTIMURxx [149]3 years ago
3 0

Answer:

D. surplus; sell

Explanation:

According to my research on Economics, I can say that based on the information provided within the question a surplus demand currently exists and the government must intervene and sell domestic currency for foreign currencies or gold. A surplus is an excess of something, which the accounts being greater than zero indicate this. Then by selling their currency they are leveling out the BOP back to zero where it should be.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

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2 years ago
The direct materials and direct labor budgets provide information for preparing the:________a) production budget.b) sales budget
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Answer:

C.) Cash budget.

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As the name sounds is exactly what it directly entail; as it explains the direct input and output flow pattern of cash in a said organisation or firm. And in most cases, it is seen to access these funds and their usage pattern.

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Butler Corporation is considering the purchase of new equipment costing $84,000. The projected annual after-tax net income from
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Answer:

The net present value of the machine is $5530

Explanation:

Data provided in the question:

Cost of the equipment = $84,000

Annual after-tax net income from the equipment after deducting depreciation = $3,000

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Now,

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= $31,000

Therefore,

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The net present value of the machine is $5530

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