Answer:
The exchange rate is $1 = 2 pounds.
Explanation:
The exchange rate is the relative value of the two currencies. In other words, the amount of one currency you can exchange for another currency.
The US dollar is defined as equal to 0.1 ounces of gold.
The British Pound is defined as equal to 0.05 ounce of gold.
The exchange rate between the two countries is
= 
= 
= 2
So the exchange rate is $1 = 2 pounds. This means that $1 can be used to exchange 2 pounds.
Answer:
Moral Hazard
Explanation:
Moral hazard is a situation which involves two parties, one party gets involved in a risky event because he knows that it is protected against the risk and that the other party will bear the cost and consequences of his actions if there be any loss. It arises when both the parties have incomplete information about each other.
In the financial market, there is high risk that a borrower may do undesirable things and may not pay back if he knows that when he defaults, his guarantor might will pay. This can make him to act with reckless abandon and in a riskier way.
Because Hamon in the Question got insurance that is worth twice his restaurant, he became careless in the management of his restaurant because he believes that if there be any loss, insurance will pay. This is called Moral Hazard in Business.
Answer:
The correct answer is D: economies of scale
Explanation:
Economies of scale are the diminished cost by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. <u>This happens because fixed costs are spread over a larger number of goods.</u> There are implications in variable costs as well (for example in obtaining discounts by large purchases from suppliers). In general, the larger the scale, the more cost savings.
The cost per unit depends on how much the company produces. Larger companies can produce more by spreading the cost of production over a larger amount of goods. Specialization of labor and more integrated technology boost production volumes. Lower per-unit costs can come from bulk orders from suppliers, larger advertising buys, or lower cost of capital. Spreading internal function (for ex: accounting, information technology, and marketing) costs across more units produced and sold helps to reduce costs.
Answer:
the subject of Federal Open Market Committee decisions is as below:
level of interest rates and growth of the money supply
