When purchasing power parity (PPP) does not hold in the short run, economists have developed an alternative short-run explanatory theory based on the idea
That exchange rates are influenced by factors such as interest rates, inflation rates, and market expectations. This alternative theory is known as the "Interest Rate Parity (IRP)".
Interest Rate Parity suggests that in the short run, exchange rates are primarily determined by the relative interest rates between two countries. According to IRP, if there is a difference in interest rates between two countries, it will lead to changes in the exchange rate to equalize the expected returns on investments in both countries.
Under IRP, if the interest rates in one country are higher than in another country, investors are likely to invest in the higher interest rate country to earn more returns. This increased demand for the currency of the higher interest rate country will cause its value to appreciate relative to the other currency, resulting in an exchange rate adjustment.
In addition to interest rates, factors such as inflation rates and market expectations also influence exchange rates in the short run. If there is higher inflation in one country compared to another, it can lead to a depreciation of the currency in the higher inflation country.
Overall, the alternative short-run explanatory theory based on interest rate parity suggests that exchange rates in the short run are influenced by interest rate differentials, inflation differentials, and market expectations, providing an alternative explanation when PPP does not hold.
Visit here to learn more about power parity:
brainly.com/question/28199500
#SPJ11
The weighted average cost of capital is determined by Blank______. Multiple choice question. multiplying the weighted average after-tax cost of debt by the weighted average cost of equity adding the weighted average after-tax cost of debt to the weighted average cost of equity dividing the weighted average after-tax cost of debt by the weighted average cost of equity adding the weighted average before-tax cost of debt to the weighted average cost of equity
The weighted average cost of capital is determined by dividing the weighted average after-tax cost of debt by the weighted average cost of equity. Option C. This is further explained below.
What is WACC?Generally, A company's WACC is determined by calculating the cost of each kind of capital (debt and equity) by the market value weight assigned to that source of capital, and then summing the results.
In conclusion, It is calculated by dividing the weighted average after-tax loan costs by the weighted average equity costs, and the weighted average cost of capital is the result.
Read more about WACC
https://brainly.com/question/14223809
#SPJ1
Ani contributes pre-tax dollars to an account managed by her employer for her health care. If she does not spend all of her money by the end of the year, she may forfeit it. What kind of plan does he have
He can plan about FSA (Flexible Spending Account).
What is Flexible Spending Account?Consider opening a flexible spending account (FSA) if you want to reduce the cost of your medical costs. With an FSA, people can use pre-tax money to pay for a variety of costs that their health or dental insurance doesn't cover, such as co-pays and coinsurance as well as specific health care requirements like prescription and some over-the-counter medications, feminine hygiene products, contact lenses, and glasses.
FSAs are capped at $2,850 annually per employer.
If you're married, your partner may contribute up to $2,850 to an FSA through their job as well. However, you cannot use FSA funds to pay for insurance premiums; only deductibles and copayments are eligible.
Both over-the-counter drugs with a prescription and prescription meds for prescription use are covered by FSA money. Without a prescription, insulin reimbursements are accepted.
Learn more about FSA here:
https://brainly.com/question/20388870
#SPJ4
According to the "spotlight on small business" box, many investors are turning to independent advisors rather than large wall street firms because:______.
The reason why many investors are turning to independent advisors instead of large wall street firms is because they are offered more flexibility in investment options.
Why are people choosing independent advisors?Independent advisors do not have to worry about a certain corporate policy or the interest of their shareholders because they have none.
This allows them to offer more investment options to people thereby allowing them the flexibility to pick the investment choices they prefer.
Find out more on independent advisors at https://brainly.com/question/16033676
#SPJ1
Under ucc 2-302, who has the best chance of getting out of the contract due to unconscionability?
Under UCC 2-302, Breanna has the best chance of getting out of the contract due to unconscionability.
UCC 302 rule defines that if any contract or any part of the contract is found unconscionable at the time when it was made by the court, then the court can either refuse to enforce the contract or reinforce without the unconscionable clause.
When Breanna signed the contact to purchase AC, it was an urgent situation where she get only a little chance to bargain and she had to agree to the terms of the contract.
The contract was overcharged by the addition of $500 as interest and financing fees as Breanna had poor credit at that time.
To know more about UCC2-302 here:
https://brainly.com/question/14957422
#SPJ4
A written order to a bank to pay the stated amount to the person or business named is a.
A check is a written order to a bank to pay the stated amount to the person or business named on it. A checking account is also called a demand deposit, because the money may be withdrawn at any time—that is, “on demand.”
A check or draft is a written order from a depositor to a bank to pay a specified amount from the balance of a checking account. A negotiable instrument that instructs a bank to pay an amount from a personal checking account to an individual or entity is known as a bill of exchange or check.
Payment orders can be used when electronic payments are not possible. Accounts payable is like a check. It is much cheaper to pay electronically, but if this is not possible the department can place a payment order. They can be ordered through government banks.
Learn more about the stated amount at
https://brainly.com/question/20813161
#SPJ4
Describe why cash flow management is important to a business and its financial health. Use a recent financial news story as an example to support your claims
The cash flow statement plays a vital role for each type of company as it shows the cash positions with respect to the liquidity because the cash should be the most liquid asset and the same would be presented in the organization's hands.
Moreover, they always try to have a sufficient cash amount so that the risk attached to the unfavorable economic situation could be eliminated. So the business wants to store a high value of cash amount and have sufficient liquidity and the same would be presented in the cash flow statement.
Learn more about cash flow here:https://brainly.com/question/24179665
#SPJ4
Nonbanks are financial organizations that accept no but offer many of the services provided by regular banks.
This is true about nonbanks. They are financial organizations that accept no regulations but offer many of the services provided by regular banks.
What are nonbanks?This is the term that is used to refer to the types of banks that are known to offer services that are similar to banks.
These types of banks are known to have no licenses and they are not regulated by any body.
These types of financial institutions operate in ways that may seem like they are carrying out similar activities that goes on in the banks. Some of these would be loans, insurance and exchange of currency.
Some examples of this would be
Microloan operativesInsurance companiesVenture capitalists.Read more on nonbanks here; https://brainly.com/question/15068191
#SPJ1
Good Work Week at Allstate helps employees prepare for future challenges and responsibilities both at work and in their personal lives. This is an example of a(n) ________ program.
Good Work Week at Allstate helps employees prepare for future challenges and responsibilities both at work and in their personal lives. This is an example of a development program.
What is a Development Program?A development program outlines the procedures for enhancing someone's performance, knowledge, and abilities. Development strategies in the workplace enable staff members to become more productive.A development plan's typical goal is to support the operational objectives of the company. However, development programs can also raise an employee's level of happiness, which might afterward help the employer through a higher retention rate and increased professional competence.Depending on the organization, a different entity will design a development program. It could be the administration of an operating department or the human resources division. Employees and their immediate managers could occasionally ask for the creation of a development plan.To learn more about Development Program refer to:
https://brainly.com/question/27505496
#SPJ4
Long-term customer relationships _______ the cost of information collection and make it easier to _______ credit risks.
Long-term customer relationships reduce the cost of information collection and make it easier to screen out credit risks. Credit risk is the chance of suffering a loss as a result of borrower's failure to make loan payments or fulfil contractual commitments.
It typically refers to possibility that lender won't get the main and interest that is owed, which would disrupt cash flows and raise collection costs. Excess cash flows could be written to offer more protection against credit risk. A higher coupon rate, which generates more cash flows, can be used to reduce credit risk when it is present for a lender.
To learn more about credit risk, click here.
https://brainly.com/question/895044
#SPJ1
Identify a true statement about the conservation movement.
a. It argued that the natural world is available only for the exploitation of human beings.
b. It believed that the natural world does not have the productive capacity to produce long-term income.
c. It considered natural resources to be able to provide an inexhaustible supply of material.
d. It argued that the natural world was valued as a resource, providing humans with both direct benefits and indirect benefits.
Free samples, point-of-purchase displays, sweepstakes, and contests are examples of what imc strategy?
Free samples, point-of-purchase displays, sweepstakes, and contests are examples of IMC strategy of sales promotion.
This is further explained below.
What is sales promotion. ?Generally, Examples of IMC strategies for sales promotion include giving out free samples, putting up displays at points of sale, holding sweepstakes, and holding competitions.
In conclusion, Consumer and trade sales promotions are two different categories. While a trade campaign concentrates on organizational clients that may prompt rapid sales, a consumer sales promotion targets the consumer or end-user purchasing the goods.
Read more about sales promotion.
https://brainly.com/question/15900481
#SPJ1
All of the following countries would agree that a 6-month-old does not need their mother more than a 3-year-old EXCEPT:
All of the following countries would agree that a 6-month-old does not need their mother more than a 3-year-old except Norway.
What is Norway?
Norway is a Scandinavian country with mountains, glaciers, and deep coastal fjords. Oslo, the capital, is a city of parks and museums. The Viking Ship Museum in Oslo houses preserved 9th-century Viking ships. Bergen, with its beautiful wooden cottages, is the starting point for cruises to the majestic Sognefjord. Norway is also recognized for its fishing, hiking, and skiing, particularly in Lillehammer's Olympic resort.Norway is known as the Land of the Midnight Sun. It is well-known for its magnificent fjords, lakes, and breathtaking skies. Norway is also known for its languages, Vikings, and folklore, as well as its environmental friendliness and oil production. Furthermore, many Norwegians are well-known skiers, frozen pizza fans, and Tesla drivers!Except for Norway, all of the following countries would agree that a 6-month-old does not require their mother any more than a 3-year-old.As it is given in the description itself, except for Norway, all of the following countries would agree that a 6-month-old does not require their mother any more than a 3-year-old.
Therefore, all of the following countries would agree that a 6-month-old does not need their mother more than a 3-year-old except Norway.
Know more about Norway here:
https://brainly.com/question/14767256
#SPJ4
Polaco Corporation makes a product that has the following direct labor standards: Standard direct labor-hours 0.4 hours per unit Standard direct labor rate $ 24.00 per hour In May the company produced 8,500 units using 3,220 direct labor-hours. The actual direct labor rate was $22.10 per hour. The labor efficiency variance for May is:
The labor efficiency variance for May for Polaco Corporation is $4,320 Favorable.
What is the labor efficiency variance?The labor efficiency variance shows the difference between the actual direct labor hours worked and budgeted direct labor hours,
The labor efficiency variance is computed as the Standard hours allowed for production (SH) – actual hours taken (AH) × standard rate.
Data and Calculations:Standard direct labor-hours per unit = 0.4 hours
Standard direct labor rate = $24 per hour
Production in May = 8,500 units
Actual hours used = 3,220 hours
Standard hours allowed = 3,400 hours (8,500 x 0.4)
Labor efficiency variance = $4,320 (3,400 - 3,220 x $24)
Thus, the labor efficiency variance for May for Polaco Corporation is $4,320 Favorable.
Learn more about calculating labor efficiency variance at https://brainly.com/question/13136127
#SPJ1
One difference between a hedger and a speculator is that the hedger Group of answer choices may not close out his position by taking an opposite position. may have either a profit or a loss. does not have to put up margin. faces a risk without the futures contract.
One difference between a hedger and a speculator is that the hedger (C) faces a risk without the futures contract.
Who is a hedger?A hedge is an investment position used to counterbalance prospective losses or benefits from a companion investment. Stocks, exchange-traded funds, insurance, forward contracts, swaps, options, bets, numerous types of over-the-counter and derivative products, and futures contracts can all be used to create a hedge.Who is a speculator?In finance, speculation is the acquisition of an asset with the expectation that it will increase in value in the near future. Many speculators pay little attention to a security's underlying value and instead focus solely on price changes.One distinction between a hedger and a speculator is that the hedger bears risk in the absence of a futures contract.
Therefore, one difference between a hedger and a speculator is that the hedger (C) faces a risk without the futures contract.
Know more about a speculator here:
https://brainly.com/question/14340872
#SPJ4
Correct question;
One difference between a hedger and a speculator is that the hedger
Group of answer choices
(A) does not have to put up a margin.
(B) may not close out his position by taking an opposite position.
(C) faces a risk without the futures contract.
(D) may have either a profit or a loss.
In order to shorten the duration of a project the project manager should limit the choices of activities to just those that are on the __________.
In order to shorten the duration of a project, the project manager should limit the choices of activities to just those that are on the critical path.
The time required to complete a project is referred to as the project duration.
All tasks are significant, but only some are crucial.
A series of interconnected tasks known as the critical route has a direct impact on the project's completion date.
The entire project will be late if any work on the crucial path is delayed.
The calculated start or conclusion date of the project is controlled by a group of tasks (or, occasionally, only one job) known as the critical path.
Task dependencies often link the tasks that make up the critical path together.
Such task networks are probably prevalent throughout your project design. The project is finished when the final job on the critical path is finished.
Hence, the critical path is the answer.
Learn more about Project:
https://brainly.com/question/25282828
#SPJ1
Regardless of the mode used for the growth of a firm, entrepreneurs need to be good negotiators.
A. True
B. False
The statement, regardless of the mode used for the growth of a firm, entrepreneurs need to be good negotiators, is true.
Regardless of the mode used for the growth of a firm, entrepreneurs need to be good negotiators. They need to negotiate with external parties in order to obtain the human and financial resources which is necessary to fuel business growth.
Basically, entrepreneurs who are good negotiators are able to strike that balance between getting what they want and giving away the service. This becomes beneficial for both parties.
Hence, good negotiations is important, as it significantly contributes to business success, and help build better relationships.
To learn more about negotiators here:
https://brainly.com/question/17174090
#SPJ4
__________ are elements of information that the commander identifies as being critical to timely decision making.
Commander's critical information requirements are elements of information that the commander identifies as being critical to timely decision-making.
Commander (commonly abbreviated as Cmdr) is a common naval officer rank. Commander is also used as a rank or title in other formal organizations, including some police forces. In some countries, this naval rank is called frigate commander.
A commander is also a general term for officers who command units in an army, such as platoon commanders, brigade commanders, and squadron commanders. Police use terms such as "district commander" and "operations commander."
Commander is a rank used in the navy but is rarely used as a rank in the military. Originally, the title "master and commander" was used in the 18th century by a naval officer to command a warship, too large for a lieutenant to command, but too small to warrant the duties of a post-his captain (until about 1770). ) master; the commander served as his own master. In practice, these were unrated sloops, usually no more than 20 guns. The Royal Navy shortened "Master and Commander" to "Commander" in his 1794. However, the terms "master and commander" remained in common (unofficial) use for several years, until the equivalent American rank master commander continued to be used until 1838 when it was changed to the commander. I got
Learn more about the commander here
https://brainly.com/question/340890
#SPJ1
If demand increases while supply remains unchanged the equilibrium price of the product will?
If the supply stays the same and the demand increases, the equilibrium price, and quantity increase. Increased demand increases demand volume, increases competition in the market, and increases product prices.
Demand is the quantity of goods that consumers are willing to purchase at various prices over a period of time. The relationship between price and quantity demanded is also called the demand curve.
Demand is the number of consumers willing and able to purchase a product at various prices over a period of time. Demand for goods refers to consumers' desire to purchase goods and their willingness and ability to pay for them.
Learn more about demand here:https://brainly.com/question/1245771
#SPJ4
Attitudes (usually negative) toward others based on their gender, religion, race, or membership in a particular group, are the basis of _____
Attitudes (usually negative) toward others based on their gender, religion, race, or membership in a particular group, are the basis of prejudice.
What is Prejudice?An impression or view about someone that is solely based on that person's membership in a certain group is referred to as prejudice. People may harbor bias toward others who are of a different race, gender, or religion, for instance. When someone behaves in accordance with their preconceived notions, they are prejudging (thus the name "prejudice") someone before they have the opportunity to get to know them better. This is an unreasonable attitude and perspective that is detrimental to everyone involved.For instance, a person may have many preconceived notions about someone who is Christian, Muslim, or Jewish and permit those opinions to influence how they perceive and treat such others. People who are Black or White may experience the same thing.
Know more about prejudice with the help of the given link:
https://brainly.com/question/22665804
#SPJ4
"All the profession/occupations are equally important" How and why?
Answer:
How: All proffessions and occupations have their various fields and all fields are needed to work together for the effective growth of an economy.
Why: An economy comprises of fields in which the various occupations are embedded in. For the success of an economy all fields must work together. That is no field or occupation is more important than the other
Which Agile principle is being practiced if a team chooses to focus on the highest priority product backlog items?
Agile model principle is being practiced if a team chooses to focus on the highest priority product backlog items.
What is Agile model?Agile model serves as one that is a systematic method that can be used to make any project even in the absence of concrete requirements .
In this case, Agile model principle is being practiced if a team chooses to focus on the highest priority product backlog items.
Learn more about Agile model at
https://brainly.com/question/24660164
#SPJ1
What are the consequences of a global basket of currencies in the world?
A currency basket is a collection of various currencies with varying weightings. It is frequently used to determine the market value of another currency, a procedure known as currency peg. Forex traders may also use basket orders to trade many currency pairs at the same time.
Currency baskets are also used in contracts to minimize (or reduce) the risk of currency changes. Currency baskets include the European currency unit (which was replaced by the euro) and the Asian currency unit. The most well-known currency basket, though, is the US dollar index (USDX).
The drawbacks are:
The first thing to make is that a basket currency peg system is opaque. The second issue is that an intermediate regime often limits certain sorts of policy collaboration and may even allow policy conflict. The third drawback, and arguably the most important, is that the basket currency system makes no declaration of the criteria governing management.To know more about currency basket click here:
https://brainly.com/question/16292202
#SPJ4
A company issues its equity securities to purchase land. the common stock is not publicly traded. the best indicator of fair value is the:_______
A company issues its equity securities to purchase land. the common stock is not publicly traded. the best indicator of fair value is the appraised value of the land.
What are securities?These are financial instruments such as stocks, shares and bonds that can be traded.
In other words, securities are negotiable financial instruments issued by a company or government that give ownership rights or rights to buy and sell.
The classification of securities are:
1. Equity shares- referring to the common stock or shares.
2. Debt- referring to the bond, debentures and banknotes.
3. Derivatives- referring to options, futures, swaps and forwards.
Learn more about securities here: https://brainly.com/question/16346922
#SPJ1
If a bank has excess reserves of $20,000 and demand deposit liabilities of $80,000, and if the reserve requirement is 20 percent, then the bank has total reserves of?
The total reserves that the bank has is $36,000.
What is the total reserves?Total reserves is the sum of required reserves and excess reserves. Required reserves is the compulsory reserves that must be kept in the vaults of the Central Bank of the country. The required reserve is a function of the reserve requirement, and the deposits customers make in a bank.
The reserve requirement is the percentage of deposits that the Central bank of a country expects banks to keep as deposits. The required reserve is a monetary policy tool that is used to control the money supply in the economy.
Excess reserves is the reserves that a bank has in addition to the required reserves. Excess reserves represent money that can be lent out and used to increase the money supply in the economy.
Total reserves =required reserves + excess reserves
Required reserves = reserve requirement x demand deposit liabilities
0.2 x 80,000 = 16,000
Total reserves = 16,000 + 20,000 = 36,000
To learn more about required reserves, please check: https://brainly.com/question/26960248
#SPJ1
Diversification reduces the risk of a portfolio because?
Diversification reduces the risk of a portfolio because different investments can rise and fall independently of each other.
Divide your money among a number of assets to achieve diversification. Because different investments can rise and fall independently of one another, diversification helps to lower risk. The pairings of these assets more often than not will cancel out each other's volatility, hence lowering risk.
What is diversification and what does it reduce in a portfolio?
Spreading your investments out will limit your exposure to any one form of asset. This approach is known as diversification. This routine is intended to gradually lessen the volatility of your portfolio.What is diversification of risk?
The process of investing across various markets and subcategories within a single portfolio is known as risk diversification.
Learn more about risk diversification
brainly.com/question/4171408
#SPJ4
Monopolies, oligopolies, and monopolistic competitive industries all . Question 9 options: Earn positive profits in the long run. Are completely unconstrained in their pricing. Raise price and quantity over what would occur in perfect competition in order to maximize their profits. Have market power.
Market power exists in oligopolies, monopolistic competitive industries, and monopolies.
Market or monopoly power is the capacity of a firm (or collection of firms) to increase and maintain prices above the level that would prevail under competition. When market power is used, output is decreased and economic welfare is lost.
Describe monopolies.A scenario known as monopoly occurs when there is only one seller in the market. The monopoly case is viewed as the polar opposite of perfect competition in conventional economic analysis. The industry's downward-sloping demand curve is, by definition, the demand curve that the monopolist faces.
what is an oligopoly?A small number of providers control oligopoly marketplaces, which are dominated by them. All nations and a wide range of industries contain them. Other oligopoly markets are substantially less competitive, though they may at first appear to be so in some cases.
What exactly is monopolistic competition in an industry?In a market where numerous businesses provide goods or services that are comparable (but not exact substitutes), monopolistic competition is the norm. In a monopolistic competitive industry with low entry and exit barriers, no firm's decisions directly affect those of its rivals.
learn more about Market power here
https://brainly.com/question/1150213
#SPJ4
Absorption costing can lead managers to mistakenly believe that fixed manufacturing overhead costs will Blank______ in total as the number of units produced increases. Multiple choice question. increase remain the same decrease
Absorption costing can lead managers to mistakenly believe that fixed manufacturing overhead costs will A)increase in total as the number of units produced increases.
Absorption costing includes constant overhead as part of the inventory value, and it's far expensed as the price of products offered whilst stock is offered.
in addition, the usage of absorption costing generates a scenario wherein really manufacturing more objects that move unsold with the aid of the quit of the duration will boom internet income. because constant prices are spread throughout all devices synthetic, the unit constant fee will decrease as more gadgets are produced.
the primary benefit of absorption costing is that it complies with GAAP and extra appropriately tracks income than variable costing. Absorption costing takes under consideration all product prices, unlike variable costing, which simplest considers variable charges.
Learn more about overhead costs here https://brainly.com/question/26454135
#SPJ4
Esmeralda promises to pay fiorello $400 because ""he does not have as much money as other people. "" esmeralda’s promise is not enforceable because.
7. Option b. Consideration is mutual i.e. both parties get something in the return for the performance of the contract. However, Esmeralda has not given consideration in exchange.
Esmeralda was given the chance to audition for the Performing Arts High School which she succeeded in. She then moved to New York and attended School, studying drama and dance.
Esmeralda Santiago wrote her autobiography "When I Was Puerto Rican" which narrates her and her family's life moving from Puerto Rico to America. The book also follows the Puerto Rican girl through the many obstacles that she had to endure and overcome to change her life.
Learn more Esmeralda at
https://brainly.com/question/24812570
#SPJ1
Based on the example in the video, given the raise you received you would be worse off if inflation is
Based on the received pay raise, one would be worse off if the inflation is increasing without consideration to increase the pay raise as well.
What is an inflation?This refers to the rate of increase in prices over a given period of time and also known as the overall increase in prices or the increase in the cost of living in a country.
Usually, when we are evaluating a raise, we must account for the rate of inflation over the course of a year because if the inflation rate is greater than the percentage raise in the wage, then, one is worse off because the real income will fall.
Hence, based on the received pay raise, one would be worse off if the inflation is increasing without consideration to increase the pay raise as well.
Read more about inflation
brainly.com/question/8149429
#SPJ1
1 2 3 all a firm that purchases electricity from the local utility for $350,000 per year is considering installing a steam generator at a cost of $280,000. the cost of operating this generator would be $260,000 per year, and the generator will last for five years. if the firm buys the generator, it does not need to purchase any electricity from the local utility. the cost of capital is 10%. for the local utility option, consider five years of electricity purchases. for the generator option, assume immediate installation, with purchase and operating costs in the current year and operating costs continuing for the next four years. assume payments under both options at the start of each year (i.e., immediate, one year from now,..., four years from now). what is the net present value of the more attractive choice
The more attractive choice is the choice that has less present value which is Using steam generator valued at $1, 364,165.02
Given data;
cost of electricity per year: = $350,000
cost of installing a steam generator = $280,000
generator operation cost per year = $260,000
generator will last for = 5 years
cost of capital for local utility option = 10%
purchasing electricity from the local utility
cost of electricity per year: = $350,000
cost of capital for local utility option = 10%
Present value = - 350,000 - 350,000 / 1.10 - 350,000 / 1.10^2 - 350,000 / 1.10^3 - 350,000 / 1.10^4
Present value = - 1,453,452.906
Present value = - 1,453,452.91
Using steam generator
cost of installing a steam generator = $280,000
generator operation cost per year = $260,000
Present value = - 280,000 - 260,000 - 260,000 / 1.10 - 260,000 / 1.10^2 - 260,000 / 1.10^3 - 260,000 / 1.10^4
Present value = - 1, 364,165.016
Present value = - $1, 364,165.02
Read more on Present value here;
https://brainly.com/question/20813161
#SPJ1