defining and implementing monetary policy. conducting foreign exchange operations. holding and managing the euro area's foreign currency reserves. promoting the smooth operation of payment systems.
<h3>What is
foreign currency reserves?</h3>
Foreign Exchange Reserves are cash and other reserve assets, such as gold, held by a central bank or other monetary authority and used primarily to balance a country's accounts, influence the foreign exchange rate of its currency, and maintain financial market confidence.
Foreign exchange reserves are a country's emergency funds in the event of an emergency, such as a rapid depreciation of its currency. Countries use foreign currency reserves to maintain a fixed rate of value, maintain competitively priced exports, remain liquid in the event of a crisis, and provide investors with confidence.
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I believe that it's E. low variable cost per unit
<span>Since 1960, Chesapeake Bay has had a terrible water pollution problem. This is due to the human population growth on the watershed. The boom in population has put such a strain on the watershed that it is becoming difficult for the bay to sustain the plants, animals, and people that are living in the area.</span>
Answer:
A. $250,000
Explanation:
Real farm income can be calculated by dividing Nominal income by CPI for calculation data is given in the question.
DATA
Price per bushel = $8
units produced in 2014 = 100,000
Expense = 300,000
CPI = 2
Solution
Nominal income in 2014 = 8x100,000
Nominal income in 2014 = $800,000
Farm income = nominal income - expenses
Farm income = 800,000 - 300,000
Farm income = $500,000
real income = nominal income / CPI
real income = 500,000/2
real income = $250,000
Answer:
Firms may have to bid up stock price to complete repurchase, thus paying too much for its own stock.
Explanation:
Generally, the price of stocks are not fixed, so it might take a long time for a stock repurchase or buyback to be completed. Investors like buybacks since they tend to increase the price of stocks, but it makes them more expensive for the corporation to repurchase them.
Buybacks are seen positive by investors because they will eventually increase the earnings per share (by decreasing the number of shares outstanding) and they are also taxed in a lower rate than normal income. Management will tend to start buybacks when they believe the stock price is undervalued and they have excess cash. This way they will achieve achieve two objectives with one action:
- lower equity costs
- increase stock price