As foreign exchange activity grows, a given degree of central bank intervention becomes less effective. Hence, the correct option is (b) less effective.
Central banks manage currency by generating new currency, setting foreign currency reserves, and fixing interest rates. In regard to foreign exchange, the central bank intervention aims at stabilizing its currency in the foreign exchange market. The success of central bank interventions highly depends on how it manages and stabilizes its currency in the foreign exchange market.
If the central bank fails to maintain its stability in the foreign exchange market, it undermines the credibility of the central bank. The increase in foreign exchange activities means that the role of central bank intervention is less effective to stabilize its currency in the foreign exchange market.
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Answer:
The Journal Entry and their narrations is shown below:-
Explanation:
The Journal entry is shown below:-
a. 1.Accounts Receivable Dr, $3,300
To Sales $3,300
(Being sales is recorded)
Cash Dr, $3,234
Sales Discount Dr, $66
(3,300 × 2%)
To Accounts Receivable $3,300
(Being Payment received is recorded)
2. Accounts Receivable Dr, $3,234
=(3,300 × 0.98)
To Sales $3,234
(Being sales is recorded)
Cash Dr, $3,234
To Accounts Receivable $3,234
(Being payment received is recorded)
b. Cash Dr, $3,300
To Accounts Receivable $3,234
To Sales Discounts Forfeited 66
(Being payment received is recorded)
Answer:
(A) The cash surplus can be used for a variety of purposes. In the short-term, they may replace their car, buy better furniture, or more quickly pay off their home. TRUE
(B)Alternatively, they may purchase stocks and bonds, or increase their savings for future needs. TRUE
(C) Investments in the stock market are generally designed to increase an individual's future wealth, the purchase of bonds typically allows one to at least retain their purchasing power, while investment in savings accounts provide liquidity. FALSE
Explanation:
(A) The currency can be used to anything he owner wants.
(B) Correct, the ecnomics always define that a person after receiving his income has only two option available. It can used in consumer goods. Or it can saved to invest
(C) The reason the stock and bonds exist is to raise fund for companys whichyield a return. The company takes the most benefit from this system as it would be difficult to convince a single peroson to invest a large amount in his business. Through sotck it can ask for fewer amount to more people but, this people will receive an income but it won't become rich for a couple shares.
As this part is not true, then the whole sentence must be catalogate as false.
Answer:
Acme's current balance of accounts payable is $6000
Explanation:
The closing balance of accounts payable can be calculated using the opening balance and adjusting the changes during the period to the opening balance.
The closing balance can thus be calculated as:
Closing balance = Opening balance + Credit purchases - Payment to Accounts payable
Closing balance = 3000 + 4000 - 1000
Closing balance = $6000
