Answer: B. Currency Boards
Explanation: Capital control is a process through which Organisations put in place different actions and programs to regulate the capital used in the business. This can be in the form of prohibitions(a capital control by preventing certain spending)
Taxes are also means of controlling capital by Organisations.
Quotas are also used to control capital by assigning certain level of spending or investment.
When there is an increase in the deficit of the current account, the pressure on the home currency value all things equal would be a downward pressure.
<h3>What happens when there is a current account deficit?</h3>
A current account deficit means that the country is earning less from exporting goods to other countries than it is losing from importing from other nations.
What this means is that more money is flowing out of the country than the money that is coming in. What this leads to a loss in currency value because it points to less demand for the home currency.
This is because the deficit would place a downward pressure on the local currency. On the upside, this decrease in currency value might spur exports which would lead to a better current account balance.
In conclusion, there will be downward pressure.
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Answer:
The description of the given term "Business operations" is provided below.
Explanation:
- Together with all measures essential to manage as well as generate money besides your firm, is considered as business operations.
- Sometimes a component devoted to the industry would be included throughout the marketing strategies, enough so founding members comprehend or recognize the authoritarian leadership style, machinery, personnel, including procedures.
Answer: Inelastic
Explanation:
Based on the information given, we would calculate the elasticity of demand which would be:
= (Change in Quantity / Change in Price) (Initial Price/ Initial Quantity)
Change in Quantity = 1800 - 2000 = -200
Change in Price = 50 - 40 = 10
Initial Price = 40
Initial Quantity = 2000
Elasticity of demand would then be:
= (-200/10)(40/2000)
= (-20)(0.02)
= -0.4
Since elasticity of demand is less than 1, it is an inelastic demand.