The re equilbrium of the BOP depends upon: Select one: a) The level to which depreciation may take place b) The monetary system it follows c) The level to which appreciation may take place d) The balance of trade e) The causes of disequilbrium
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The re equilbrium of the BOP depends upon:
Select one:
a) The level to which
b) The monetary system it follows
c) The level to which appreciation may take place
d) The
e) The causes of disequilbrium
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Solved in 4 steps
- Ghana cedi is the best performing currency against US dollar’ – BawumiaThe cedi is the best performing currency in the world against the US dollar. This is according to Vice President Dr. Mahamudu Bawumia.The cedi depreciation, which has been a major problem in the country over the years, has even led to the inauguration of the FX Development Committee to tackle issues relating to the depreciation of the cedi and find solutions to them.The cedi last year depreciated by more than 12.7 percent, the worst performance since 2015 when the cedi depreciated by more than 14.6 percent.But commending the governing New Patriotic Party (NPP) for the good work done in sustaining the cedi at the Town Hall meeting held at Kumasi on Tuesday, the Vice President said there has been a major change in the cedi’s performance since the NPP got into power.“Indeed for us, if the cedi is to match what the NDC record is, in terms of the nominal change in the currency, we’d have to do a quadruple jump which…Suppose a country's central bank announces that it is decreasing the long-run money growth rate to tame inflation. The country's currency will suddenly and its rate of depreciation will then O appreciate; rise O appreciate; fall O depreciate; rise O depreciate; fallGiven demand and supply analysis, would the following event lead to an appreciation or depreciation of the £? UK citizens switch from buying stock in French companies to buying stock in UK companies. a) Depreciation b) Appreciation
- c. Consider a period when, prior to euro entry, the central bank of Lithuania maintained an exchange rate band relative to the euro-at the time this was a prerequisite for joining the Eurozone. The rules said that Lithuania had to keep its exchange rate within ±15% of the central parity of 3.4528 litas per euro. Compute the exchange rate values corresponding to the upper and lower edges of this band. Suppose PPP holds. Assuming Eurozone inflation was 2% per year and inflation in Lithuania was 6%, compute the PPP-implied rate of depreciation of the lita. Could Lithuania maintain the band requirement? For how long? Does your answer depend on where in the band the exchange rate currently sits? A primary objective of the European Central Bank is price stability (low inflation) in the current and future Eurozone. Is an exchange rate band a necessary or sufficient condition for the attainment of this objective?How can central banks improve their management of infation expectations?15. When an SME’s functional currency is the currency of a hyperinflationary economy, a. all amounts in the financial statements shall be stated in terms of the measuring unit current at the end of the reporting period. b. some amounts in the financial statements shall be stated in terms of the measuring unit current at the end of the reporting period. c. all amounts for monetary assets and liabilities in the financial statements shall be restated using the general price index, rather than the specific price index. d. none of these. The PFRS for SMEs does not address this matter.
- From the macroeconomic environment from banks sources its inputs and to which it sells its outputs. Relating to both the domestic market and the foreign sector. Consider the monetary and fiscal policy effects as proposed by the central banks and the government budget, the movement in the exchange rate, the state of the macro-economy as influenced by both the public and private sectors.Based on the latest statistics published by Bank Negara Malaysia, Ringgit Malaysia has depreciated by 4.9% against US dollar during the first quarter of year 2020. Explain how the currency depreciation will affect export, import and the balance of trade of the country.(a) Calculate each of the following for Year 2. Show your work. (i) Real GIDP per capita for Arturia (il) Real GDP per capita for Ringberg (b) If Arturia and Ringberg have the same velocity of money in Year 2, which nation must have the higher money supply in Year 2? Explain (c) Calculate each of the following in Year 2. Show your work. (i) The inflation rate in Arturia (il) The inflation rate in Ringberg (d) Based on your answer to part (c), if the nominal interest rate is the same for both nations in Year 2, which nation experiences the higher real interest rate in Year 2? Explain. (e) Ringberg produces consumer goods and capital goods. While maintaining full employment, Ringberg decides to allocate more resources to the production of consumer goods. What will be the effect on the long-run economic growth rate in Ringberg? Explain. esc C 1 の
- European Central Bank will keep its aggressive monetary stimulus that is, expansionary monetary policy in place, where as US will not continue to do so. "With the help of an equation", explain the effect of this on the long run depreciation of the US dollarDuring 2018 till 2020, Malaysian exchange rate faced a depreciation. Based on this situation, what is the reason of the appreciation happen in that year?+ in130.acellus.com/Student Functions/Interface/acellus_engine.html?ClassID=1881940841# What aspect of Aggregate Demand results in monetary gain from "factors of production" to households? A. investment B. tariffs C. interest yright © 2003-2022 International Academy of Science. All Rights Reserved. C 5 6 & O acer * 8 9 HE 0 4 $16 + backspace