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3 years ago

When establishing an ad campaign in a foreign country, what does the difference in currency exchange rate affect the most?

Business

1 answer:

pentagon [3]3 years ago

4 0

Answer:

Option A. The cost structure of the ad campaign

Explanation:

The reason is that the currency exchange rate effects the transactions of money from home to foreign or foreign country to home country. So the option with money transaction is option A.

The rest of the options are planning and are things that are not associated with the foreign transactions. So the remainder options are not the one which will be effected by the currency exchange rate.

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Inventory records for Dunbar Incorporated revealed the following:

svlad2 [7]

Answer:

Cost of goods sold assuming LIFO would be $474

Explanation:

Date Q U.cost Cost Sold Inventory Cost

april 1 530 2,37 1256,1 330 200 474

apri 20 310 2,5 775 310 0 0

640

8 0

3 years ago

1. The interest rate that the Federal Reserve Bank (the Fed) charges member banks for loans is known as the____________ .

horsena [70]

Answer:

1. Discount rate.

2. Increase.

Explanation:

A Federal Reserve Bank is one of the twelve regional banks of the Federal Reserve System in the United States of America. The Federal Reserve Banks are saddled with the responsibility of implementing the monetary policy designed and provided by the Federal Open Market Committee (FOMC).

Federal Reserve System also known as the Fed, was created under the Federal Reserve Act which was passed by US Congress in 1913. The Fed began its operations in the year 1914. It's a financial institution which was founded by President Woodrow Wilson and was primarily aimed at backing each banks in order to put a definitive end to the bank panics of the 1800s.

Furthermore, just like all central banks, the Fed is a government financial institution which is saddled with these responsibilities;

1. Controlling the issuance of currency in United States of America: the Fed promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets.

2. Providing banking services to all the commercial banks in the country: the Fed is the "lender of last resort.

3. Regulating banking activities: it has the power to supervise and regulate banks.

The Federal Reserve Board is the governing body which essentially manages the Federal Reserve System and performs an oversight function on domestic monetary policies.

<em>Additionally, the interest rate that the Federal Reserve Bank (the Fed) charges member banks for loans is known as the discount rate. Also, the Fed can increase the money supply by lowering this rate (discount rate) and thus, empowering the member banks to lend more money.</em>

5 0

3 years ago

A store offers two payment plans. Under the installment plan, you pay 25% down and 25% of the purchase price in each of the next

MaRussiya [10]

Answer:

a-1) Present value of the instalment option = $93.08

Present value of paying the bill immediately =$90

a2) Paying the bill immediately is the better deal

b-1) Present value of the instalment option = $88.65

b-2) Paying in instalments in this case is the better deal

Explanation:

a-1) Calculate Present value of the instalment option

The payments are spread out as follows: $25 immediately, and 25 at the end of each of the following 3 years, this is an annuity due where the present value is calculated as follows:

$Present value =PMT*\frac{[1-(1+i)^-^n]}{i}*(1+i)$

PMT = the annuity payment at the beginning of each period=$25

i = interest rate per period that would be compounded for each period

=0.05

n = number of payment periods=4

Present value = $25*\frac{[1-(1+0.05)^-^4]}{0.05}*(1+0.05)$ =$93.08

Present value of paying the bill immediately= $100 less the 10% discount= $100*0.9 = $90

a-2)Paying the bill immediately is the better deal as it has a lower cost of $90 compared to paying in instalments which a present value cost of $93.08

b1) If the payments on the 4-year instalment plan do not start for a full year, then the present value of the payment stream is calculated as follows:

$Present value =PMT*\frac{[1-(1+i)^-^n]}{i}*\frac{(1+i)}{1+1}$

= $PMT*\frac{[1-(1+i)^-^n]}{i}$

= $25*\frac{[1-(1+0.05)^-^4]}{0.05}$ = 88.65

b-2) paying in instalments in this case is the better deal as it has a lower cost of $88.65 compared to paying the bill immediately which has present value cost of $90.

4 0

3 years ago

If you earned a 2.6% return on your savings with a 25% tax rate, what is your after-tax rate of return?

mamaluj [8]

Answer: 1.95%

Explanation:

Your after-tax return can be calculated by the formula;

= return * ( 1 - tax rate)

= 2.6% * ( 1 - 25%)

= 1.95%

5 0

3 years ago

Suppose the consumer price index for one year was 120 and for the next year it was 132. what is the corresponding inflation rate

Bond [772]

The corresponding inflation rate is 10%

4 0

4 years ago