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OLga [1]
2 years ago
12

I am an absolute beginner to the job. Whenever I receive an inquiry from a client, my supervisor will text me a price in RMB (Ch

inese yuan) and ask me to divide it directly by 6.93. But I just checked the current exchange rate was around 6.35. What I am asking is, for the ratio 6.93 here, why is it different from the current exchange rate?​
Business
1 answer:
forsale [732]2 years ago
6 0

Answer:

There had been a consensus among economists that the Chinese currency has been undervalued in the 15% to 40% range for many years.1 However, the International Monetary Fund (IMF) stated in the summer of 2015 that the Chinese currency was no longer undervalued against the dollar given its recent appreciation.2

Chinese money, however, comes by two names: the Yuan (CNY) and the people's renminbi (RMB). The distinction is subtle: while renminbi is the official currency of China where it acts as a medium of exchange, the yuan is the unit of account of the country's economic and financial system.

1:02

Yuan Vs RMB: Understanding The Difference

Money As a Medium of Exchange

Money enables anyone who possesses it to participate as an equal market player. When consumers use the money to purchase an item or service, they are effectively making a bid in response to an asking price. This interaction creates order and predictability in the marketplace. Producers know what to produce and how much to charge, while consumers can reliably plan their budgets around predictable and stable pricing models.

When money, as represented by a currency, is no longer viable as a medium of exchange, or if its monetary units can no longer be accurately valued. Consumers lose their ability to plan budgets, and there is no longer a way to gauge supply and demand accurately. In short, market volatility will cause the markets to become chaotic.

Prices are bid up or raised, in response to worries about scarcity and fears of the unknown. Meanwhile, supply diminishes because of hoarding behaviors, coupled with an inability of producers to quickly replenish inventory.

Money as Unit of Account

Unit of account (or numeraire) is an economic term that represents a unit in which prices are measured. A numeraire is usually applied to a single good, which becomes the base value for the entire index or market. By having a numeraire, or base value, it allows us to compare the value of goods against each other. In essence, the numeraire acts as a set standard of value across an exchange.

An example of a numeraire arises when we look at how currencies were valued under the Bretton Woods Agreement and System during the mid-twentieth century. The U.S. dollar (USD) was fixed at $35 per ounce of gold. All other currencies were then priced as either a multiple or a fraction of the dollar.3 In this situation, the USD acted as the de facto benchmark, or numeraire, because it was fixed to the price of gold.

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What is the customer's goal?
ollegr [7]

Answer:

The key aspect of any business, company, or employer is customer service goals.

Explanation:

A customer service department and the staff represent the company and contribute to building the company's public perception. Customer service objectives are specific objectives and guidelines put in place by an enterprise to ensure that every client is 100% satisfied with the services provided by the enterprise. Excellent customer service means that every customer's needs and desires can be met promptly. A customer should never get away with a company or leave a place unhappy.

Improve customer service measurement

<u>Customers goals :</u>

  1. Easy to get in touch with customers
  2. Response times accelerated
  3. Improve customer service measurement
  4. Find ways to create an all-round experience for our customers
  5. Develop a loyalty program for clients
  6. Create a culture that focuses on customers
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6 0
3 years ago
Suver Corporation has a standard costing system. The following data are available for June
Anettt [7]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

The actual quantity of direct materials purchased 20,000 pounds.

standard price of direct materials $ 7.00 per pound.

Material price variance $ 5,000 Unfavorable.

Material quantity variance S 2,500 Favorable.

Direct material price variance= (standard price - actual price)*actual quantity

-5,000= (7 - AP)*20,000

5,000= 140,000 - 20,000AP

20,000= 145,000AP

Actual price= 7.25

7 0
3 years ago
A home comparable to yours in your neighborhood sold last week for $75,000. Your home has a $60,000 assumable 8% mortgage (compo
Svetach [21]

Answer:

The selling price should be $66K.

Explanation:

Capital Budgeting defines the future value as present value times the interest rate over the years FV=(1+i)^n, the following table shows both future values for Neighbor’s house and mine to calculate the differences.

Future value (FV) = Present value (PV) + (1 + Interest rate)n, where n is raised to the power of the number of years.

FV = PV +p (1+r) -30

PV = 60000

= $60000 (1+0.075) - 30

= $60000 (0.11422)

= $6859.26 + $60000

= $66853.26 .

Given this estimate, my selling price will now be $66K, making a profit of $5K, this way the future seller can either choose to buy my home or any other in the neighborhood since the future value will be the same even though the interest rate is 0.5% higher.

7 0
3 years ago
Martin transfers real estate with an adjusted basis of $260,000 and fair market value of $350,000 to a newly formed corporation
katrin [286]

Answer:

$40,000

Explanation:

We can calculate recognized gain on the transfer and basis for his stock just by deducting adjusted basis value from liability on the transfered real estate.

Calcuation

iability on the transfered real estate        $300,000

less: adjusted basis value                       ($260,000)

Gain recognized                                        $40,000

3 0
2 years ago
Read 2 more answers
You have a portfolio that is equally invested in Stock F with a beta of 1.08, Stock G with a beta of 1.45, and the market. What
Aliun [14]

Answer:

1.265

Explanation:

According to the situation, the solution of the beta of portfolio is as follows

Beta portfolio = (weightage of investment F × beta F) + (proportion of investment G ×beta G)

Beta protfolio =  (0.5 × 1.08) + (0.5 × 1.45)

= 0.54 + 0.725

= 1.265

Hence, the beta of your portfolio is 1.265  by applying the above formula

5 0
3 years ago
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