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Alex17521 [72]
3 years ago
6

Assume that a country with an open economy has a fixed exchange-rate system and that its currency is currently overvalued in the

foreign exchange market. Which of the following must be true at the official exchange rate?
a. The quantity of the country's currency supplied is less than the quantity demanded.
b. The quantity of the country's currency supplied exceeds the quantity demanded.
c. the demand curve for the country's currency is horizontal.
d. The supply curve for the country's currency is horizontal.
e. The domestic interest rate is equal to the interest rate in that of the world.
Business
1 answer:
olasank [31]3 years ago
7 0

Answer: b. The quantity of the country's currency supplied exceeds the quantity demanded.

Explanation:

A country operating a fixed-exchange rate system would be actively trading its currency to ensure that it remains at a certain rate. If the currency is overvalued, it means that the currency is actually weak and is being propped up by the company's actions in the forex market.

A reason for the weakness would be that the supply is higher than the demand of the currency which means that, as per the rules of supply and demand, the currency is trading at a lower price, i,e., it is weak.

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pochemuha

Based on the information given the desired profit per unit is $0.14 per unit.

First step is to find the unit using this formula

Units=Target sales revenue / Target selling price per unit

Units=$850500 / $4.05

Units =210,000

Second step is to calculate the  desired profit per unit using this formula

Desired profit per unit=Target selling price per unit - (Target costs / Units)

Desired profit per unit=$4.05-($821250 / 210,000)

Desired profit per unit=$4.05- $3.91

Desired profit per unit=$0.14

Inconclusion the desired profit per unit is $0.14 per unit.

Learn more here:

brainly.com/question/24315795

7 0
2 years ago
Investing $2,000,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 3.0% in thi
Neko [114]

Answer:

the payback period is 14 months

Explanation:

The computation of the payback period is shown below:

Profit is

= $2,000,000 - $1,669,426

= $330,574

Now payback period is

= 1 + $330,574 ÷ $1,669,426

= 1 +0.198 years

= 1.198 years

= 14.37 months

= 14 months

Hence, the payback period is 14 months

8 0
3 years ago
Advertising is important for most companies, especially companies such as P&G that sells mostly to end customers. But, most
kari74 [83]

Explanation:

All for-profit companies have a marketing strategy.

P&G is a business to consumer (B2C) company, so no matter how much you sell your products to large retailers, the end user will always be an individual whose needs may change and the company must be mindful that their products comply with user requirements.

P&G can establish marketing actions through retailers for which it sells, with in-store display advertising models. You can also use customer interaction to get fundamental feedback so that the company guides its pricing strategy and new product development.

So even with established market products, relationship marketing is a key strategy for large corporations that want to build customer loyalty and achieve market leadership.

5 0
3 years ago
Nico Corporation has cost of goods sold of $300,000 and inventory of $30,000, then the inventory turnover is ________ and the av
Xelga [282]

Answer:

Invnetory TurnOver   10

Average inventory   36.5

Explanation:

\frac{COGS}{Inventory} = $TO Inventory\\

300,000 / 30,000 = 10

The company sales his inventory 10 times per year

In some cases, we are given with a beginning and ending inventory.

For those, we calculate the average inventory:

(beginning + ending)/2

\frac{365}{Inventory \: TO} =$average age

365/10 = 36.5

The average the inventory age is 36.5 days

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we divide one fro manother to get a metric in days of how much the invneotry is in store before being sold.

7 0
3 years ago
Effie plans to save $100 every six months for the next 5 years. If her account earns 14 percent, compounded semi-annually, how m
lina2011 [118]

Answer:

$1,381.64

Explanation:

For this question, we determine the Future value. By applying the future value formula that is shown on the spreadsheet. Kindly find it below:

Data provided

Future value = $0

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PMT = $100

The formula is shown below:

= -FV(Rate;NPER;PMT;PV;type)

So, after solving this, the future value is $1,381.64

6 0
3 years ago
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