Business, 10.12.2019 07:31 motionlessinwhite18

Advocates of the floating rate system argue that multiple choice there is no connection between the floating rate system and trade balance. floating rates boost exports. floating rates keep inflation rates close to zero. floating rates adjust trade imbalances. floating rates boost imports.

Answers: 2

Show answers

Answers

Answer from: GreenHerbz206

The answer is there is a connection between floating rate system and trade balance.

Explanation:

Floating exchange rate can be said to be a situation in which the exchange rate is allowed to move freely in response to the forces of demand and supply.The higher the demand for the currency the lower the supply for the currency. The higher will be the value of such currency in terms of other currency, a currency is demanded for the purchase of goods and services and for the purpose of investment. The investment we are talking about may be a long term investment or a short term investment. For example when a foreign company build a factory for the production of goods in another foreign countries.

The exchange rate in a free market economy is determined by the interaction of demand and supply. Demand for a particular currency is an indication of the export for the goods and services produced in such a country,in the sense that people that want to buy the export goods of a country will need the country currency to do so. On the other hand, the supply of a country's currency is determined by the amount of import of a country as the country's importers need to change their local currency to a foreign currency to be able to import foreign made goods into their country. For example if a Nigerian importer wants to import goods from United States to Nigeria such an importer will have to change the Nigerian Naira to United States dollar to be able to import such goods because payments for such a goods will be done in dollars.

The floating exchange rate help to adjust trade imbalance, in the sense that a country will import goods from a particular country in spite of their local production in other to ensure that the country other countries continues to purchase the country goods. A country can also use a floating exchange rate to keep inflation rate low when a country import goods that they can produced locally if their cost of Production is cheaper abroad than in their home country.this will ensure that the prices of the goods will be affordable for the consumers to buy, because the prices of such goods will be low.

Answer from: Quest

What do you mean by that?

Answer from: Quest

you want me to join your discord for points?

Another question on Business

Business, 22.06.2019 13:10

Thomas kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. thomas's fastest-moving inventory item has a demand of 6,000 units per year. the cost of each unit is $100, and the inventory carrying cost is $10 per unit per year. the average ordering cost is $30 per order. it takes about 5 days for an order to arrive, and the demand for 1 week is 120 units. (this is a corporate operation, and the are 250 working days per year.)a) what is the eoq? b) what is the average inventory if the eoq is used? c) what is the optimal number of orders per year? d) what is the optimal number of days in between any two orders? e) what is the annual cost of ordering and holding inventory? f) what is the total annual inventory cost, including cost of the 6,000 units?

Answers: 3

Answer

Business, 22.06.2019 23:30

Rate of return douglas keel, a financial analyst for orange industries, wishes to estimate the rate of return for two similar-risk investments, x and y. douglas's research indicates that the immediate past returns will serve as reasonable estimates of future returns. a year earlier, investment x had a market value of $27 comma 000; and investment y had a market value of $46 comma 000. during the year, investment x generated cash flow of $2 comma 025 and investment y generated cash flow of $ 6 comma 770. the current market values of investments x and y are $28 comma 582 and $46 comma 000, respectively. a. calculate the expected rate of return on investments x and y using the most recent year's data. b. assuming that the two investments are equally risky, which one should douglas recommend? why?

Answers: 1

Answer

Business, 23.06.2019 01:00

The monthly demand equation for an electric utility company is estimated to be p equals 60 minus left parenthesis 10 superscript negative 5 baseline right parenthesis x, where p is measured in dollars and x is measured in thousands of killowatt-hours. the utility has fixed costs of $3 comma 000 comma 000 per month and variable costs of $32 per 1000 kilowatt-hours of electricity generated, so the cost function is upper c left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 32 x. (a) find the value of x and the corresponding price for 1000 kilowatt-hours that maximize the utility's profit. (b) suppose that the rising fuel costs increase the utility's variable costs from $32 to $38, so its new cost function is upper c 1 left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 38 x. should the utility pass all this increase of $6 per thousand kilowatt-hours on to the consumers?

Answers: 2

Answer

Business, 23.06.2019 09:00

It will gain you more knowledge, intensify your soft skills, grow your strong work ethics and grow your network and grow your network. what is it ?

Answers: 3

Answer

You know the right answer?

Advocates of the floating rate system argue that multiple choice there is no connection between the...

Questions