The Beginning Inventory Was 340 Units At A Cost Of $13 Per Unit. Goods Available For Sale During The (2024)

Business High School

Answers

Answer 1

a. In the given scenario, the beginning inventory was 340 units at a cost of $13 per unit. Goods available for sale during the year were 1,420 units at a total cost of $19,980. In May, 640 units were purchased at a total cost of $8,960, and the only other purchase transaction occurred during October, so the following calculations are required:

Quantity of goods purchased in October = Goods available for sale - beginning inventory - purchase in May

Quantity of goods purchased in October = 1,420 - 340 - 640

Quantity of goods purchased in October = 440 units

Cost per unit purchased in October = Total cost of purchase in October / Quantity of goods purchased in October

Cost per unit purchased in October = $6,160 / 440 units

Cost per unit purchased in October = $14 per unit

b-1. Using the periodic inventory system and the FIFO method, the calculation of cost of goods sold and ending inventory is as follows:

In the first place, we have to calculate the cost of goods sold:

Cost of goods available for sale = 1,420 units × $14 per unit

Cost of goods available for sale = $19,880

Less: Cost of beginning inventory = 340 units × $13 per unit

Cost of beginning inventory = $4,420

Less: Cost of goods purchased in May = 640 units × $14 per unit

Cost of goods purchased in May = $8,960

Cost of goods sold = $19,880 - $4,420 - $8,960

Cost of goods sold = $6,500

The ending inventory can be calculated as follows:

Ending inventory = Units available for sale - Cost of goods sold

Ending inventory = 1,420 units - 780 units

Ending inventory = 640 units

Therefore, the cost of ending inventory is calculated as follows:

Cost of ending inventory = 640 units × $14 per unit

Cost of ending inventory = $8,960

b-2. Using the periodic inventory system and the LIFO method, the calculation of cost of goods sold and ending inventory is as follows:

In the first place, we have to calculate the cost of goods sold:

Cost of goods available for sale = 1,420 units × $14 per unit

Cost of goods available for sale = $19,880

Less: Cost of purchase in October = 610 units × $14 per unit

Cost of purchase in October = $8,540

Cost of goods sold = $19,880 - $8,540

Cost of goods sold = $11,340

The ending inventory can be calculated as follows:

Ending inventory = Units available for sale - Cost of goods sold

Ending inventory = 1,420 units - 770 units

Ending inventory = 650 units

Therefore, the cost of ending inventory is calculated as follows:

Cost of ending inventory = 650 units × $14 per unit

Cost of ending inventory = $9,100

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Related Questions

Service operations often face more difficulty in planning than their manufacturing counterparts. However, service does have certain advantages that manufacturing often does not. Explain service planning difficulty, and the advantages and disadvantages.

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Service operations often face more difficulty in planning than their manufacturing counterparts. However, service does have certain advantages that manufacturing often does not.Service planning difficulty:Service planning is the process of developing strategies and plans to ensure that a company's services are available to meet customer needs. Service planning is more difficult than manufacturing planning for a variety of reasons, including the following:

1. The variability of demand and the nature of services: Because services are typically customized to meet individual customer needs, they are more complex than manufactured goods. Service providers are required to manage a variety of complex and diverse processes, ranging from sales and marketing to scheduling, operations, and customer support. This variability makes service planning difficult because it's challenging to forecast customer demand and service needs.

2. The service delivery process: Service operations are often more complex than manufacturing operations, involving a wide range of processes and procedures. Services are delivered in a variety of ways, ranging from in-person to online, and require different resources and technologies to ensure that they are delivered efficiently and effectively.

This complexity makes it difficult to design and implement service delivery systems that can meet customer needs and expectations.Advantages of service planning:Service planning has certain advantages over manufacturing planning, including the following:

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Which of the following statements is NOT true?
A. A corporation has a continuous life.
B. A corporation has a separate legal existence.
C. Shareholders of a corporation have limited liability.
D. A corporation has less government regulation.

Answers

The statement that is NOT true is A corporation has less government regulation.

Option D is correct .

In reality, corporations are subject to significant government regulation. They are required to comply with various laws and regulations that govern their formation, operation, financial reporting, taxation, and other aspects.

Government regulations are in place to ensure that corporations operate in a fair and responsible manner, protect the interests of shareholders and stakeholders, and maintain transparency and accountability.

What is a corporation?

A corporation is an autonomous legal body that has a separate legal personality from its owners or shareholders. As a result, it can own assets, incur liabilities, and operate under its own name. Corporations are one of the most popular business structures since they provide limited liability to shareholders and have an unlimited lifespan .

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Whereas a domestic currency appreciation increases domestic residents'
command of purchasing power over foreign goods,
does the same to
their dommand of purchasing power over domestic goods:
•A. Interest on reserves.
O B. Domestic currency depreciation.
© C. Relative interest rate.

Answers

The correct option is B. No, a domestic currency appreciation does not increase domestic residents' command of purchasing power over domestic goods.

When a country's currency appreciates, it becomes stronger relative to other currencies and thus requires more of the foreign currency to purchase the same amount of goods and services as before.

This means that imports become cheaper for domestic residents as they can now purchase more foreign goods with the same amount of domestic currency. However, domestic goods become relatively more expensive for foreign buyers, which can negatively impact exports and domestic producers.

Regarding the options provided in the question, none of them directly address the impact of a domestic currency appreciation on domestic purchasing power. Interest on reserves (Option A) is generally a tool used by central banks to manage monetary policy and promote financial stability. It does not directly impact exchange rates or domestic purchasing power.

Domestic currency depreciation (Option B), on the other hand, can increase domestic purchasing power over both domestic and foreign goods. When a currency depreciates, it becomes weaker relative to other currencies and requires less of the foreign currency to purchase the same amount of goods and services. This means that exports become cheaper for foreign buyers, which can boost demand for domestic goods and support domestic producers.

Relative interest rates (Option C) can also impact exchange rates and thus domestic purchasing power, but in a more indirect way. Higher interest rates in a country may attract foreign investors looking to earn higher returns on their investments, which can increase demand for the country's currency and lead to a currency appreciation. Conversely, lower interest rates may lead to a currency depreciation. However, the relationship between interest rates and exchange rates is complex and can be influenced by many factors, including inflation, economic growth, and political stability.

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Intro A new project is expected to generate annual sales of $110,000 and annual costs of $104,500 Annual depreciation attributable to the project is $60,000. The marginal tax rate is 34%. Part 1 B Attempt 1/10 for 10 pts. What is the supplemental operating cash flow in each year of operation? 0+ decimals Submit

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The supplemental operating cash flow for each year of operation is $3,630.

To calculate the supplemental operating cash flow for each year of operation, we need to subtract the annual costs and depreciation from the annual sales and then apply the marginal tax rate to the resulting amount.

Supplemental Operating Cash Flow = (Annual Sales - Annual Costs - Annual Depreciation) * (1 - Marginal Tax Rate)

Let's calculate the supplemental operating cash flow for each year of operation using the given values:

Annual Sales = $110,000

Annual Costs = $104,500

Annual Depreciation = $60,000

Marginal Tax Rate = 34% (0.34)

Year 1:

Supplemental Operating Cash Flow = ($110,000 - $104,500 - $60,000) * (1 - 0.34)

= ($110,000 - $104,500 - $60,000) * 0.66

= $5,500 * 0.66

= $3,630

Year 2 (assuming the same values as Year 1):

Supplemental Operating Cash Flow = ($110,000 - $104,500 - $60,000) * (1 - 0.34)

= ($110,000 - $104,500 - $60,000) * 0.66

= $5,500 * 0.66

= $3,630

Year 3 (assuming the same values as Year 1):

Supplemental Operating Cash Flow = ($110,000 - $104,500 - $60,000) * (1 - 0.34)

= ($110,000 - $104,500 - $60,000) * 0.66

= $5,500 * 0.66

= $3,630

The supplemental operating cash flow for each year of operation is $3,630.

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When a release request is rejected, the CBSA will issue
a;-----------

Answers

When a release request is rejected, the CBSA will issue a non-release notification to the importer or broker.

What is the CBSA-The Canada Border Services Agency (CBSA) is a federal organization responsible for administering Canada's customs and border regulations. CBSA's main function is to help legitimate trade while safeguarding the nation's security. CBSA manages the movement of goods and people over the Canadian border, screening for contraband, and enforcing Canadian laws and regulations.There are many reasons why a release request might be refused, including missing or incorrect documentation, discrepancies in data provided, or issues with the goods themselves. The CBSA will send a non-release notification to the broker or importer in these cases. This notification includes the reason for the rejection, instructions on how to make corrections, and the time limit within which these corrections must be made. If the importer or broker does not respond within this time limit, the shipment may be confiscated or destroyed. In some cases, the CBSA may also levy fines or other penalties against the importer or broker for non-compliance with customs and border regulations.In conclusion, the CBSA issues a non-release notification when a release request is denied.

This notification explains the reason for the rejection and outlines the necessary steps to rectify the issue. Failure to comply with these instructions may result in the confiscation or destruction of the shipment or penalties for non-compliance.

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As a business executive, what are the key steps to risk
management would you apply? Choose ONE BUSINESS and analyse the
measures the business has applied to manage risks?

Answers

Key steps to risk management: Identify, assess, plan, implement, monitor, and communicate. Example: XYZ Corporation implements risk assessments, internal controls, diversifies suppliers, maintains insurance, and conducts ongoing monitoring and communication.

As a business executive, the key steps to risk management include identifying risks, assessing their potential impact, implementing risk mitigation measures, monitoring and reviewing risks, and adapting strategies accordingly.

These steps help businesses proactively identify and address potential risks to protect their interests and maintain operational stability.

One business that has effectively implemented risk management measures is XYZ Corporation, a multinational technology company. XYZ Corporation has a comprehensive risk management framework in place to address various types of risks, including operational, financial, strategic, and reputational risks.

To identify risks, XYZ Corporation conducts regular risk assessments and engages in scenario planning to anticipate potential threats and vulnerabilities. They have dedicated risk management teams that analyze industry trends, regulatory changes, and internal processes to identify emerging risks.

In terms of risk mitigation, XYZ Corporation has implemented several measures. They have robust internal controls and compliance protocols to ensure regulatory compliance and minimize operational risks.

They also have a business continuity plan in place to mitigate the impact of potential disruptions such as natural disasters or cyber-attacks. Additionally, they have comprehensive insurance coverage to transfer certain risks to insurance providers.

XYZ Corporation regularly monitors and reviews risks through ongoing risk assessments, internal audits, and reporting mechanisms. They have established key risk indicators (KRIs) and performance metrics to track and measure risk exposures.

Based on the findings, they adapt their strategies and implement necessary controls or corrective actions to address identified risks.

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Please rate the following statement as "TRUE" or "FALSE":
"The cost-of-equity of a company, which can be estimated via the CAPM, is the correct discount rate, r, to apply and discount the entire firm's cash
flows at within a discounted cash flow (DCF) model."

Answers

FALSE. The statement is false because the cost-of-equity, estimated using the CAPM, represents the required return for equity investors.

It is not the appropriate discount rate to apply to discount the entire firm's cash flows within a discounted cash flow (DCF) model. The DCF model considers the cash flows generated by both equity and debt holders. Therefore, the correct discount rate to use in a DCF model is the weighted average cost of capital (WACC), which reflects the blended cost of equity and debt financing. The WACC takes into account the relative proportions of equity and debt in the firm's capital structure, providing a more comprehensive discount rate for valuing the firm's cash flows. The correct discount rate to use in a DCF model is the weighted average cost of capital (WACC).

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You plan to deposit the following amounts at the end of each of the next three years into an account paying an interest rate of 12 percent per year. Year 1 2 3 Requirement 1: What is the future value of these cash flows at the end of Year 3? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Future Cash Flow $3,000 6,000 10,000 value

Answers

The future value of the cash flows at the end of Year 3 is approximately $23,033.25.

To calculate the future value of the cash flows at the end of Year 3, we can use the future value of an ordinary annuity formula:

FV = P * ((1 + r)ⁿ⁻¹) / r

Where:

FV = Future value

P = Cash flow amount for each year

r = Interest rate per period (12% per year, or 0.12 as a decimal)

n = Number of periods (3 years in this case)

We will calculate the future value for each cash flow amount and then sum them up to get the total future value.

Cash flow amounts:

Year 1: $3,000

Year 2: $6,000

Year 3: $10,000

Calculating the future value for each cash flow:

FV1 = $3,000 * ((1 + 0.12)³⁻¹) / 0.12

FV2 = $6,000 * ((1 + 0.12)²⁻¹) / 0.12

FV3 = $10,000 * ((1 + 0.12)¹⁻¹) / 0.12

Evaluating the expressions inside the parentheses:

(1 + 0.12)³ = 1.404928

(1 + 0.12)² = 1.254016

(1 + 0.12)¹ = 1.12

Calculating the future values:

FV1 ≈ $3,000 × (1.404928 - 1) / 0.12

≈ $4,249.78

FV2 ≈ $6,000 × (1.254016 - 1) / 0.12

≈ $8,783.47

FV3 ≈ $10,000 × (1.12 - 1) / 0.12

≈ $10,000.00

Summing up the future values:

Total Future Value = FV1 + FV2 + FV3

Total Future Value ≈ $4,249.78 + $8,783.47 + $10,000.00

≈ $23,033.25

Therefore, the future value of the cash flows at the end of Year 3 is approximately $23,033.25.

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a) Illustrate cognitive map for any brand and explain its functions.

b) Differentiate between evoked set, inept set, and inert set for the placement for each of the brands in the following categories: i. Fast food restaurants ii. Retail clothing stores

Answers

a) Here is an example of a cognitive map for the brand "Nike": The central node of the map would be "Nike" itself, representing the brand as a whole.

Connected to the central node would be various sub-nodes representing different aspects of the brand, such as "Sports Performance," "Innovation," "Athletic Apparel," "Footwear," "Marketing Campaigns," "Sponsorships," and "Brand Image."

Each of these sub-nodes can further branch out into more specific elements. For example, "Athletic Apparel" may have sub-nodes like "Running Apparel," "Training Apparel," and "Outdoor Apparel."

The connections between nodes represent the associations and relationships between different elements of the brand.

The cognitive map helps to visualize how consumers perceive and organize information about the brand, its products, and its attributes.

It also helps to understand the brand's positioning, differentiation, and the key factors influencing consumer decision-making.

The cognitive map can be used by marketers to identify gaps, areas of strength, and opportunities for brand development and communication strategies.

b) In the context of fast food restaurants and retail clothing stores: i. Fast food restaurants: Evoked Set: The evoked set represents the small number of fast food restaurants that come to a consumer's mind when considering a quick meal. It includes the top-of-mind brands that the consumer has a preference for and is likely to consider. For example, McDonald's, Burger King, and Subway might be part of a consumer's evoked set for fast food restaurants.

Inept Set: The inept set comprises brands that the consumer actively avoids or dislikes. These brands are considered unsuitable or unappealing. For instance, if a consumer dislikes spicy food, fast food restaurants like Taco Bell or KFC might be part of their inept set.

Inert Set: The inert set represents brands that a consumer is not aware of or has little knowledge about. These brands are neither preferred nor disliked. They may not be considered at all during the decision-making process. Lesser-known or local fast food chains might be part of the inert set for many consumers.

ii. Retail clothing stores: Evoked Set: The evoked set for retail clothing stores consists of the brands that consumers actively consider and are likely to purchase from. These brands align with their preferences, style, and perceived value. Examples could include Zara, H&M, and Forever 21 as part of a consumer's evoked set for retail clothing stores.

Inept Set: The inept set represents the brands that consumers actively dislike or find unsuitable for their clothing needs. These brands are consciously avoided. For instance, if a consumer prefers high-end luxury brands, they may consider stores like Walmart or Target as part of their inept set.

Inert Set: The inert set comprises brands that consumers are not aware of or have little knowledge about. These brands are not considered during the decision-making process and may not be on the consumer's radar. Lesser-known or niche clothing brands may fall into the inert set for many consumers.

It's important to note that the composition of these sets can vary based on individual preferences, cultural factors, geographic location, and other personal influences.

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Line of Business
Kool Corp Revenues
Aid Corp Revenues
Paint
$35,000,000
$10,000,000
Hair dye
17,000,000
22,000,000
Chalk
44,500,000
2,300,000
Widgets
13,000,000
1,200,000
What is Kool Corp’s Herfindahl Index? If Kool takes over Aid, what will be the Herfindahl Index of the combined firm? Kool Corporation is considering the acquisition of Aid Corporation. If they do so, will the combined firm be more concentrated or less concentrated than Kool before the merger?

Answers

The Herfindahl Index for Kool Corp can be calculated by summing the squared market shares of each line of business.

The Herfindahl Index of the combined firm after acquiring Aid Corp can be determined by including Aid Corp's market shares and recalculating the index. If Kool Corp takes over Aid Corp, the combined firm will be more concentrated than Kool Corp before the merger if the Herfindahl Index increases. To calculate Kool Corp's Herfindahl Index, we need to square the market shares for each line of business and sum them: Herfindahl Index for Kool Corp = (Paint market share)^2 + (Hair dye market share)^2 + (Chalk market share)^2 + (Widgets market share)^2 The market share for each line of business can be obtained by dividing Kool Corp's revenues for that line of business by the total revenues of all lines of business. After acquiring Aid Corp, we include Aid Corp's market shares and recalculate the Herfindahl Index using the same formula.

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Given a standardized normal distribution (with a mean of 0 and a standard deviation of 1), complete parts (a) through (d).
Click here to view page 1 of the cumulative standardized normal distribution table.
Click here to view page 2 of the cumulative standardized normal distribution table.
a. What is the probability that Z is less than 1.54?
The probability that Z is less than 1.54 is 0.9382. (Round to four decimal places as needed.)
b. What is the probability that Z is greater than 1.847
The probability that Z is greater than 1.84 is 0.0328 (Round to four decimal places as needed.)
c. What is the probability that 2 in between 1.54 and 1.847
The probability that Z is between 1.54 and 1.84 is (Round to four decimal places as needed.)

Answers

The probability that 2 is between 1.54 and 1.847 is 0.9693 - 0.9382 = 0.0311

Given a standardized normal distribution with a mean of 0 and a standard deviation of 1, the cumulative distribution function is given in the cumulative standardized normal distribution table. To solve the given problem, follow the steps mentioned below:

a) To find the probability that Z is less than 1.54, located 1.5 on the leftmost column of the table and 0.04 on the top row of the table. The intersection of row 1.5 and column 0.04 gives the probability 0.9370. Hence, the probability that Z is less than 1.54 is 0.9382. (Round to four decimal places as needed.)

b) To find the probability that Z is greater than 1.847, located 1.8 on the leftmost column of the table and 0.04 on the top row of the table.

The intersection of row 1.8 and column 0.04 gives the probability 0.9641. Therefore, the probability that Z is greater than 1.84 is 1 - 0.9641 = 0.0359 (Round to four decimal places as needed.)

c) To find the probability that 2 is between 1.54 and 1.847, first, find the probability that Z is less than 1.847. The probability that Z is less than 1.847 is 0.9693.

Then, find the probability that Z is less than 1.54. The probability that Z is less than 1.54 is 0.9382.

In conclusion, when given a standardized normal distribution (with a mean of 0 and a standard deviation of 1), to find the probabilities of various events, the cumulative standardized normal distribution table can be used to solve the problem.

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Which regional market segment is expected to have the lowest growth rate? 1) Europe Budget segment 2) All segments will grow at the same rate 3) Americas Performance segment 4) Americas Budget segment 5) Asia Budget segment

Answers

Among the given regional market segments, the Americas Performance segment is expected to have the lowest growth rate. Therefore, the correct option is 3) Americas Performance segment.

Market segments are groups of consumers with similar interests, needs, or characteristics that an organization recognizes and chooses to target with its advertising, product development, and sales efforts. There are a variety of methods for dividing a market into segments, including geographic, demographic, psychographic, and behavioral variables.Regional market segments are subgroups of a larger market that share common geographic or geopolitical characteristics. Regional market segmentation is used by businesses that recognize that different regions may require different marketing techniques and products.

Americas performance segmentThe term "performance" refers to the fact that this category is focused on performance, often referred to as "performance vehicles." Customers that are seeking high-performance automobiles are targeted in this market segment. High-end sports cars, supercars, and race cars are examples of the kinds of automobiles that fit into this category. In addition, other performance-oriented products such as high-end watches, athletic shoes, and apparel can be found in this category. Because these are premium goods with a limited audience, the growth rate of this market segment is anticipated to be lower than that of others.

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write a hypothetical performance evaluation subordinate

Answers

Performance evaluations are the cornerstone of a company's performance management strategy. Employee evaluations are a great opportunity for a company to provide employees with feedback on how they're performing.

Discuss opportunities for professional development. These evaluations may also be used to provide information about potential raises and promotions.Here is a hypothetical performance evaluation of a subordinate employee.A performance evaluation for a subordinate employee should have the following format.

The opening statement of a performance evaluation is a brief overview of the employee's performance during the period. The evaluation should begin with an introduction of the employee's name and job title. The supervisor should explain the purpose of the evaluation.

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Run Around.Millie issues a note to Bob.Bob endorses the note and transfers it to Anne.Anne endorses the note and transfers it to Henry.In a timely fashion,Henry endorses the note and presents it to Millie for payment.When Henry presents the note to Millie,she asks him for reasonable identification.He did not have any identification with him and told her that she had no right to dishonor the instrument.Millie,however,refused to provide him the funds until he returned with proper identification.Nevertheless,when he returned with proper identification,Millie refused to pay the note,claiming that she lacked the funds with which to do so.Henry proceeded immediately to request that Anne pay the note,but she told him that he would have to get his money from Bob,who cannot be found.Which of the following is true regarding when,or if,the note was dishonored?
A)The note was never dishonored by Millie,because she eventually acknowledged his entitlement to payment and only refused to pay because she lacked funds with which to do so.
B)Millie dishonored the instrument when she asked for proper identification.
C)Millie dishonored the instrument when she refused to pay it because she lacked the funds to do so,but Anne did not dishonor the instrument.
D)Anne dishonored the instrument when she told Henry that he would have to seek recovery from Bob,but Millie did not dishonor the instrument.
E)Millie dishonored the instrument when she told Henry that she could not pay him because she lacked the funds,and Anne dishonored the instrument when she told Henry that he would have to seek payment from Bob.

Answers

Millie dishonored the instrument when she told Henry that she could not pay him because she lacked the funds, and Anne dishonored the instrument when she told Henry that he would have to seek payment from Bob. The correct answer is E

In the given scenario, Millie, as the issuer of the note, is obligated to pay it upon proper endorsem*nt and presentation. However, when Henry presented the note to Millie, she refused to pay, claiming a lack of funds. This refusal to pay constitutes dishonor of the instrument by Millie.

Furthermore, when Henry sought payment from Anne, she informed him that he would have to get his money from Bob. By redirecting Henry to another party for payment, Anne also dishonored the instrument.

Therefore, both Millie and Anne are responsible for dishonoring the note.

The correct answer is E

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In Australia the 'Big Four' banks (Commonwealth Bank, NAB, ANZ Bank and Westpac) dominate Australia's banking sector. A bank's decisions to maintain, raise or cut interest rates are all influenced by the actions of the other banks.
Answer the following questions:
a. In this type of banking market, is the Commonwealth Bank able to maximise profits using the same rule for a perfectly competitive market where marginal benefit = equals the marginal cost? ______________ Type Y (for Yes) or N (for No).
b. NAB and Westpac announce that they will be maintaining their interest rates but the Commonwealth Bank and ANZ are still undecided. The payoff matrix (with payoffs represented in millions of dollars, Commonwealth Bank being the left hand player and ANZ being the player on the top row) is shown below. What decision should ANZ make? ____________ (Type C for Cut or M for Maintain).
maintain cut
maintain 125,100 65,160
cut 175,50 70,60

c.Does this game satisfy the criteria for a Prisoner's Dilemma? _____________ Type Y (for Yes) or N (for No).
d. Is there the potential for consumers and borrowers to benefit from this outcome? ________________ Type Y (for Yes) or N (for No).

Answers

a. No, Commonwealth Bank never able to maximise profits,b)ANZ should maintain its interest rates,c)Yes This game satisfies the criteria for a Prisoner's Dilemma.YesThere is the potential for consumers.

a.In a banking market where the decisions of one bank are influenced by the actions of other banks, the bank cannot simply maximize profits .

b. Looking at the payoff matrix, ANZ's best decision would be to maintain its interest rates.

c. In a Prisoner's Dilemma, each player has a dominant strategy that leads to a suboptimal outcome for both players. .

d. If both banks maintain their interest rates, it could result in a more stable and competitive market, with banks competing based on factors other than interest rates alone, such as customer service, product offerings, or convenience.

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which statement best explains why the populists and the democrats believed that bimetallism would help farmers and workers?

Answers

Both populists and Democrats believed that populist party bimetallism would help farmers and workers due to its potential impact on the economy and monetary system.

Bimetallism refers to a monetary system where both gold and silver are used as legal tender at a fixed ratio. Here are two statements that best explain their beliefs Economic Stability and Inflation: Populists and Democrats believed that bimetallism would promote economic stability and combat deflation.

Which they saw as harmful to farmers and workers. By allowing the circulation of both gold and silver, they believed it would increase the money supply, leading to a moderate inflationary environment. This would result in higher crop prices and increased wages, benefiting the agricultural and labor sectors. Another reason populists and Democrats supported bimetallism was its potential to alleviate debt burdens and provide easier credit access. They argued that an increase in the money supply through bimetallism would lead to a decrease in the value of money. As a result, borrowers would be able to pay off their debts more easily with less valuable currency.

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A copy center uses standard 8.5x11" paper at a rate of 37 boxes of paper a day. (Assume 365 days in a year.) The annual cost of holding a box of paper in inventory for a year is estimated at $3. Because of the weight of the paper, shipping an order of paper costs $279 per order. How many boxes of paper should the copy center order with each order in order to minimize their annual ordering and holding costs?

Answers

The quantity of boxes of paper that the copy center should order with each order to minimize their annual ordering and holding costs is 12.72 boxes of paper (rounded off to the nearest 0.01).

The Economic Order Quantity is the quantity of inventory to be ordered at one time for the minimum sum of order and holding costs. Economic Order Quantity (EOQ) is a formula used to calculate the most cost-effective number of units to order. This is done by examining the cost of ordering and holding inventory.

Explanation: From the given data: Annual requirement of paper, A = 37 boxes/day × 365 days/year = 13505 boxes/year Annual holding cost per box, H = $3Ordering cost per order, O = $279So, we have the formula to calculate the Economic Order Quantity: EOQ = √((2AO)/H)Where A = annual requirement of product O = ordering cost per order H = annual holding cost per unit.

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The Precision Door Company sold 2,200 doors during 2018 at $160 per door. Its beginning inventory on January 1 was 130 doors at $56. Purchases made during the year were as follows: February 225 doors at $62 April 350 doors at $65 June 700 doors at $70 August 300 doors at $66 October 400 doors at $68 November 250 doors at $72 Compute the COGS and Ending Inventory under each of the following inventory cost flow assumptions: (a) Simple Weighted Average, (b) FIFO, (c) LIFO.

Answers

(a) Simple Weighted Average:

COGS: $86,284

Ending Inventory: $6,097

(b) FIFO (First-In, First-Out):

COGS: $88,536.40

Ending Inventory: $7,280

(c) LIFO (Last-In, First-Out):

COGS: $158,400

Ending Inventory: $32,600

Under the simple weighted average cost flow assumption, the cost of goods sold (COGS) is calculated by taking the weighted average cost of all the inventory available for sale during the period. In this case, the total cost of the beginning inventory and the purchases made throughout the year is divided by the total quantity of doors to determine the average cost per door. Multiplying the average cost per door by the quantity sold gives us the COGS. For ending inventory, the remaining doors that were not sold are valued at the same average cost per door used to calculate COGS. The quantity of doors in ending inventory is multiplied by the average cost to determine its value.

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Jude purchased a $10,000 par Treasury bill at $9,625 and sold it
60 days later for $9,700.
What was the EAR on the T-bill?
A) 6.52 percent
B) 3.10 percent
C) 4.83 percent
D) 7.35 percent

Answers

The EAR on the T-bill is 6.52 percent. So, the correct answer is A) 6.52 percent.

To calculate the Effective Annual Rate (EAR) on the Treasury bill, we need to consider the holding period return and the compounding effect.

The holding period return is calculated by subtracting the purchase price from the selling price and dividing it by the purchase price:

Holding Period Return = (Selling Price - Purchase Price) / Purchase Price = ($9,700 - $9,625) / $9,625 = 0.0078

Next, we need to calculate the EAR using the holding period return. Since the holding period is 60 days, we divide the holding period return by the number of days in a year (365) and multiply it by 100 to get the percentage:

EAR = (1 + Holding Period Return)^(365/60) - 1 = (1 + 0.0078)^(365/60) - 1 = 0.0652

Converting the EAR to a percentage, we get 6.52 percent. Therefore, the correct answer is A) 6.52 percent.

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Economies of scale are most likely to be found in a firm with
(Give the answer and explain why)
a. Many workers
b. High fixed costs
c. Division of labor
d. All of the above

Answers

All of these factors - many workers, high fixed costs, and division of labor - contribute to economies of scale by allowing firms to increase efficiency, reduce average costs, and achieve a higher level of production. As the firm grows in scale, it can benefit from these factors and experience cost advantages over smaller competitors, leading to improved competitiveness and potential market dominance. So, d. All of the above- is the correct answer.

Economies of scale refer to the cost advantages that a firm can achieve as it increases its scale of production. These advantages result in a reduction in the average cost of production per unit as the firm produces more output. The factors mentioned in options a, b, and c - many workers, high fixed costs, and division of labor - are all associated with economies of scale.

Many workers:

Having a large number of workers can contribute to economies of scale. As the number of workers increases, the firm can benefit from increased specialization and division of labor. Specialization allows workers to become more skilled and efficient in performing specific tasks, leading to increased productivity and lower average costs. Additionally, a larger workforce can enable the firm to operate production facilities continuously, taking advantage of economies related to continuous production and reduced idle time.

High fixed costs:

High fixed costs are often associated with capital-intensive industries or businesses that require significant investments in infrastructure, machinery, or technology. When fixed costs are spread over a larger production volume, the average fixed cost per unit decreases. This decrease in average fixed cost leads to economies of scale. The larger the scale of production, the more the fixed costs are spread out, resulting in lower average costs per unit.

Division of labor:

The division of labor refers to the specialization of tasks among workers. As the scale of production increases, it becomes more feasible to divide tasks into specialized roles. Specialization allows workers to focus on specific tasks that they can perform efficiently, leading to higher productivity and reduced costs. By dividing labor, firms can take advantage of the expertise and efficiency gained from specialized workers, leading to economies of scale.

Overall, all of these factors - many workers, high fixed costs, and division of labor - contribute to economies of scale by allowing firms to increase efficiency, reduce average costs, and achieve a higher level of production. As the firm grows in scale, it can benefit from these factors and experience cost advantages over smaller competitors, leading to improved competitiveness and potential market dominance.

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A
bond with 5 years to maturity and a coupon rate of 9% has a par, or
face, value of $21,000. interest is paid annually. if you require a
return of 16% on this bond, what is the price of the bond?

Answers

The price of the bond is $18,796.82.


A bond with 5 years to maturity and a coupon rate of 9% has a par, or face, value of $21,000. interest is paid annually. To calculate the price of the bond, we use the formula as follows: PV = (C / r) x [1 – (1 / (1 + r) ^ n)] + FV / (1 + r) ^ nWhere:PV = Price of the bond C = Annual coupon r = Yield or required rate of return on the bond (rate of interest)FV = Face or par value of the bond n = Number of years to maturity So, in this problem, we have: C = $21,000 x 0.09 = $1,890FV = $21,000n = 5 years r = 16% = 0.16By putting the values in the above formula, we get: PV = ($1,890 / 0.16) x [1 – (1 / (1 + 0.16) ^ 5)] + $21,000 / (1 + 0.16) ^ 5= $7,720.12 + $11,076.70= $18,796.82The price of the bond is $18,796.82

When a bond is issued, the issuer promises to make interest payments to the bondholder for the bond's life and repay the face value of the bond at maturity. The value of a bond is calculated by discounting all future cash flows back to the present using the appropriate discount rate.In this problem, the bond has a face value of $21,000 and a coupon rate of 9%. Interest is paid annually. The bond has a maturity of 5 years. The required rate of return on the bond is 16%.To calculate the price of the bond, we use the present value formula. We plug in the values and then solve the equation to get the price of the bond. Using the formula, we get the price of the bond as $18,796.82.When the required rate of return is higher than the coupon rate, the bond is sold at a discount. Conversely, when the required rate of return is lower than the coupon rate, the bond is sold at a premium. In this case, the required rate of return is higher than the coupon rate. Therefore, the bond is sold at a discount, which is reflected in the price of the bond

The price of the bond is $18,796.82. When the required rate of return is higher than the coupon rate, the bond is sold at a discount. Conversely, when the required rate of return is lower than the coupon rate, the bond is sold at a premium.

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An investment is expected to pay nothing for 4 years, then will pay $18 thousand per year for 4 years. If your required rate of return is 5%, what is the maximum you should be willing to pay for this investment? It may be very helpful here to draw a timeline! Question 8 1 pts A client has $184 thousand in a bank account, which pays 8% APR compounded monthly. Since FDIC protection only applies on amounts at or below $250 thousand, he wants to know how long it will take for the account to exceed this value. Enter answer in months, accurate to two decimal places

Answers

It will take approximately 46.31 months for the account to exceed the FDIC value of $250 thousand.

a) Calculation of maximum price willing to pay for investment

For calculating the maximum price willing to pay for the investment, the first step is to calculate the present value of the future cash flows by discounting them to the present using the compound rate of 5%. The formula for calculating the present value of an annuity is,

[tex]PV = PMT \times [(1 - (1 / (1 + r)^{n} )) / r][/tex],

where,

PV is the present value,

PMT is the periodic payment,

r is the interest rate per period, and

n is the number of periods.

Using this formula for the given annuity of $18 thousand per year for 4 years at a compound rate of 5%, we get,

PV = 18000 x [(1 - (1 / (1 + 0.05)⁴)) / 0.05]

= $62,607.44

Therefore, the maximum price willing to pay for this investment is $62,607.44.

b) Calculation of time required to exceed FDIC value

To calculate the time required to exceed the FDIC value of $250 thousand, we will use the formula for compound interest,

[tex]A = P(1 + r/n)^{nt}[/tex],

where A is the amount,

P is the principal,

r is the annual interest rate,

t is the time in years, and

n is the number of compounding periods per year.

Substituting the given values, we get,

[tex]$$250000 = $184000(1 + 0.08/12)^{12t}[/tex]

Solving for t, we get

t = 46.31 months (approx.)

Therefore, it will take approximately 46.31 months for the account to exceed the FDIC value of $250 thousand.

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For a beginning and ending annual inventory of zero and no negative inventory allowed, what is the regular time production for quarter 1 given the forecasted demand for a chase demand aggregate planning strategy? 500 400 600 For a beginning and ending annual inventory of zero and no negative inventory allowed, what is the regular time production for quarter 1 given the forecasted demand for a level capacity aggregate planning strategy? 500 400 600

Answers

1. Option A is right since the anticipated demand for a 500-option chase demand aggregate planning technique. 2. Option (C) 600 of the aggregate planning technique is the best one given the anticipated demand for a level capacity.

The problem of aggregate planning. The typical aggregate planning issue seeks to identify the levels of production, inventory held in the supply chain, recruiting and firing personnel, overtime production, backorders, and demand satisfaction levels with the goal of having the lowest cost or highest profit. With an emphasis on continuous,

reliable production, aggregate planning is a technique for reviewing, creating, and maintaining a manufacturing plan.

The mid-term is when aggregate planning is most frequently concentrated on targeted sales predictions, inventory control, and production levels.

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a potenstial competitor, game list, arrives in country . game list has total costs
CGL (Q)=400⋅Q
What price can Gamerix charge in order to retain the market? What would be the profits of Gamerix in that scenario. Would your answers in this part (part (d)) be different if CGL (Q)=700⋅Q?

e) Consider the scenario described in part (d) when CGL
(Q)=400⋅Q. What are the effects on the consumer surplus and the deadweight loss of the arrival of this potential competitor? What can you conclude about the effect of potential competition on the total surplus generated by a market operated by a monopolist?

Answers

a) The price Gamerix can charge to retain the market is $400. The profits of Gamerix would be zero in this scenario.

To determine the price that Gamerix can charge in order to retain the market, we need to consider the monopolist's profit-maximizing strategy. In a monopolistic market, the monopolist sets the price where marginal revenue (MR) equals marginal cost (MC).

Given the total cost function CGL(Q) = 400Q, the marginal cost (MC) can be calculated as the derivative of the total cost function, which is MC = 400.

Since the monopolist's marginal revenue (MR) is equal to the price (P) in a monopolistic market, we equate MR to MC:

MR = MC

P = MC

P = 400

Therefore, the price that Gamerix can charge in order to retain the market is $400.

To calculate the profits of Gamerix, we need to subtract the total cost from the total revenue. The total revenue (TR) is calculated as the product of the price (P) and the quantity sold (Q). Given that Gamerix is a monopolist, the quantity sold (Q) is equal to the quantity demanded (Qd) at the price of $400.

To calculate profits:

Profits = TR - TC

Profits = P * Qd - CGL(Qd)

Profits = $400 * Qd - 400Qd

Profits = 0 (since Gamerix is not making any profits in this scenario)

If the cost function changes to CGL(Q) = 700Q, the price that Gamerix can charge would still be determined by equating MR to MC, which gives P = MC = 700. The profits would be zero in this case as well.

In part (e), with the arrival of the potential competitor, the effects on consumer surplus and deadweight loss would depend on the pricing and market strategies of the competitor. If the competitor enters with a lower price than Gamerix, it may attract some customers, reduce Gamerix's market share, and potentially decrease consumer surplus for those who switch to the competitor. Deadweight loss may also be reduced as competition increases efficiency.

In general, the entry of a potential competitor in a monopolistic market can have positive effects on consumer surplus by providing more choices and competitive pricing.

It can also reduce deadweight loss by fostering greater efficiency and innovation. However, the overall effect on total surplus depends on various factors such as the competitiveness of the market, pricing strategies, and product differentiation.

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A social woifare function is thought to be additive along the lines proposed by Bentham and Mill: W=U1 +U2 +…+Un where Ui is individuai fis utility and there are n individuals.
Suppose an economy is made up of two individuals, John and Jane. John's utility function is U john =93√x
and Jane's utility function is U Jane =5X.
There is a fixed quantity of good X(80 units) evenly divided between John and Jane ( 40 units for each). Social wolfare (W) is equal to:
W= ____ units. (Enter your response rounded to the nearest whole number.)
Social welfare could be improved if a portion of good X were transferred from_____ yo ______-

Answers

The social welfare (W) is approximately 788 units.Social welfare could be improved if a portion of good X were transferred from one individual to another.

To find the social welfare (W), we need to sum up the individual utilities (U) of John and Jane.

John's utility function is Ujohn = 93√x, and Jane's utility function is UJane = 5x.

Given that the quantity of good X is evenly divided between John and Jane (40 units each), we can substitute the value of x as 40 in their respective utility functions:

Ujohn = 93√40 ≈ 93 * 6.324 = 588

UJane = 5 * 40 = 200

Now, we can calculate the social welfare (W) by summing up their individual utilities:

W = Ujohn + UJane = 588 + 200 = 788

To improve social welfare, a portion of good X could be transferred from one individual to another. In this case, it could be transferred from John to Jane or from Jane to John. The specific direction of the transfer would depend on factors like their relative marginal utilities and societal considerations.

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the value of a bond is inversely related to changes in the investor's present required rate of return. As interest rates increase the value of the bond .............

Answers

The value of a bond is inversely related to changes in the investor's present required rate of return. As interest rates increase the value of the bond decreases.

This is because as interest rates rise, newly issued bonds offer higher coupon rates, making them more attractive to investors. As a result, existing bonds with lower coupon rates become less desirable, leading to a decrease in their value. The inverse relationship between bond value and interest rates is driven by the fact that investors can earn higher returns by investing in newly issued bonds rather than holding onto lower-yielding existing bonds. Consequently, when the investor's present required rate of return increases, the bond's value decreases as it becomes less competitive in the market.

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Abandonment of Leased Assets Moving On Inc. (Moving On) operates several gas stations across the United States. Moving On owns the land on which the gas stations are built, along with the related structures. The fuel pumps are either purchased or leased from different oil companies.
On January 1, 2019, Moving On entered into a lease with Tank Full Inc. for a new fuel pump at one of its gas stations in Fort Worth, Texas, with a noncancelable lease term of 10 years and no renewal options. The gas station already has one fuel pump in operation, which is owned by Moving On.
Because of increasing competition in the region (which results in falling demand) and mounting maintenance costs, on January 1, 2022 (the "Decision Date"), Moving On decided to cease use of the leased fuel pump on January 1, 2024 (the "Cease-Use Date"), before the end of the lease term.
Key facts related to the transaction are as follows:
Fuel Pump
• The right to use the new fuel pump is a lease, and there are no other components of the contract.
• The lease was appropriately classified as an operating lease.
• Right-of-use (ROU) asset balance on the Decision Date — $1.1 million. • The ROU liability balance on the Decision Date — $1.1 million. • Between the Decision Date and the Cease-Use Date, Moving On plans to continue using the leased fuel pump in the same manner, and as part of the same operation, as before the Decision Date.
• Moving On does not have the intent and ability to sublease the fuel pump after the CeaseUse Date.
• Although abandonment is likely, the decision to abandon the fuel pump does not involve a binding commitment, and no substantial costs have been or will be incurred in relation to the abandonment.
Gas Station
• Decision Date: o Fair value — $1.9 million. o Carrying value — $2.2 million. o Undiscounted cash flows expected to be generated as a result of the gas station’s use and disposal — $3.4 million. Case 9: Moving On Inc.
The gas station, inclusive of land, fuel pumps (both leased and owned), and related structures, constitutes a single asset group for impairment purposes.
Required:
1. How should Moving On account for its decision to abandon the leased fuel pump? Discuss the accounting impacts (if any) that occur on the Decision Date and after the Decision Date and Cease-Use Date.
2. What is the impact of abandonment on impairment considerations related to the leased fuel pump and gas station, more specifically the following?
a. Whether the abandonment decision constitutes an impairment trigger.
b. Impact on current asset grouping of the ROU asset as a result of the abandonment decision.
c. Relevance of ROU asset’s relative significance to the asset group.
d. Evaluation of whether an impairment needs to be recorded

Answers

Moving On should recognize a lease termination and derecognize the ROU asset and liability. The abandonment decision may trigger an impairment for the leased fuel pump, impacting the asset grouping and requiring an impairment assessment for the gas station.

1) Moving On must recognize a lease termination and derecognize the associated right-of-use (ROU) asset and liability on the Decision Date in order to account for the decision to give up the leased fuel pump. The accounting changes include ceasing to recognize lease expenses after the Cease-Use Date and bringing the ROU asset and liability balances to zero.

2) The following are the effects of abandonment on impairment considerations:

If the leased fuel pump's fair value is less than its carrying value, the decision to abandon it could act as an impairment trigger. If the fair value is lower than the recorded value, an impairment loss must be recorded.

b. The decision to abandon the ROU asset has an impact on its current asset grouping because it would be removed and no longer be taken into account for impairment analyses.

c. After abandonment, the relative importance of the ROU asset to the asset group may change. The removal of the leased fuel pump could have an effect on the gas stations overall impairment assessment if it constitutes a sizable portion of the asset group.

d. A review of the gas station fair value, carrying value and anticipated cash flows from its use and disposal is required to determine whether an impairment loss needs to be recorded for the entire business.

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Use the following table to answer the following questions. 3 4 Demand: Quantity 1 2 5 6 7 8 10 Price 10 9 8 7 65 4 3 1 Marginal 10 8 6 4 20-2 -4 -8 Revenue Marginal Costs: 9 6 5 3 2 3 4 5 10 Cost Average Cost 9 7.5 6.7 5.8 5 4.7 4.6 4.6 4.9 5.4 13. If the transit system was allowed to operate as an unregulated monopoly, what output would it supply and what price would it charge? Explain your reasoning. 14. If the transit system were regulated to operate at zero economic profit (no subsidy), what approximate output would it supply and what approximate price would it charge? Explain your reasoning. 15. If the transit system was regulated to provide the most allocatively efficient quantity of output, what output would it supply and what price would it charge? What subsidy would be necessary to insure this efficient provision of transit services? Explain your reasoning. 2 -6

Answers

In an unregulated monopoly, the transit system would supply the output where marginal cost equals marginal revenue, which is 6 units of quantity at a price of $7.

An unregulated monopoly seeks to maximize its profit by setting its output level where marginal cost (MC) equals marginal revenue (MR). From the table, we can observe that at an output level of 6 units, the marginal cost is $3 and the marginal revenue is $4. At this point, MC = MR, and the transit system would supply 6 units of quantity. The corresponding price would be $7, as indicated in the table.

This output and price combination allows the transit system to maximize its profit, as producing any additional units would result in marginal cost exceeding marginal revenue. Therefore, in an unregulated monopoly, the transit system would supply 6 units of quantity and charge a price of $7.

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There are two local hair salons-Large Hair Salon (LHS) and Small Hair Cutters (SHC). During busy periods, a new customer walks into LHS every 10 minutes (with a standard deviation of 5 minutes). At SHC, a customer walks in every 30 minutes (with a standard deviation of 15 minutes). LHS has 2 barbers, while SHC has 1 barber. The average service time at either location is 15 minutes per customer (with a standard deviation of 20 minutes). a. At LHS, customers wait in line for an average of ..... minutes before being served by a barber. Keep three decimal places for intermediate steps and the final answer if necessary

Answers

At Large Hair Salon (LHS), customers wait in line for an average of approximately 4.516 minutes before being served by a barber.

To calculate the average waiting time at Large Hair Salon (LHS), we need to consider the arrival rate of customers and the service rate of the barbers.

The arrival rate at LHS is given as a new customer walking in every 10 minutes, with a standard deviation of 5 minutes. This can be represented as follows:

Arrival rate (λ) = 1 / Average time between arrivals = 1 / 10 minutes = 0.1 customers per minute

The service rate at LHS is determined by the number of barbers and the average service time. LHS has 2 barbers, and the average service time is 15 minutes, with a standard deviation of 20 minutes. The service rate (μ) can be calculated as follows:

Service rate (μ) = Number of barbers / Average service time = 2 / 15 minutes = 0.133 customers per minute

To determine the average waiting time, we can use the queuing theory formula for an M/M/1 queue:

Average waiting time (W) = (ρ / μ) / (1 - ρ)

Where:

ρ = Arrival rate / Service rate

Substituting the values, we have:

ρ = 0.1 / 0.133 ≈ 0.752

Plugging this value into the formula:

W = (0.752 / 0.133) / (1 - 0.752) ≈ 4.516 minutes

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China has been targeting its exchange rate (with respect to the USD) to be within some range. At the same time, it limits the exchange of RMB (China's domestic currency) for foreign currency amounting to 50,000 USD per year per citizen.
Now, suppose that China
wants to gain more freedom in setting its monetary policy.
wants to increase RMB's usage in international trades as a trading currency.
How can China achieve these two policy targets simultaneously?

Answers

China can achieve the simultaneous goals of gaining more freedom in setting its monetary policy and increasing the usage of the RMB as a trading currency by implementing the following measures. First, it can gradually relax its exchange rate target range, allowing for more flexibility in currency valuation. Second, China can gradually increase the limit on the exchange of RMB for foreign currency, enabling greater capital flow and international trade. These steps would provide China with greater control over its monetary policy while encouraging the use of the RMB in international transactions.

To gain more freedom in setting its monetary policy, China can gradually relax its exchange rate target range. Instead of tightly managing the exchange rate within a specific range, China could allow the RMB to fluctuate more freely in response to market forces. This would provide the central bank with greater flexibility in adjusting interest rates and managing the money supply to address domestic economic conditions.Simultaneously, China can promote the international usage of the RMB as a trading currency by gradually increasing the limit on the exchange of RMB for foreign currency. By raising the annual limit of 50,000 USD per citizen, China would facilitate greater capital flow and encourage individuals and businesses to hold and use the RMB for international transactions. This would enhance the RMB's liquidity and acceptance in global trade, making it a more attractive currency for international partners.

By implementing these measures, China can achieve its dual objectives of gaining more control over its monetary policy and increasing the usage of the RMB as a trading currency. This approach would provide the necessary flexibility for China to respond to economic challenges while strengthening the international role of the RMB in global commerce.

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The Beginning Inventory Was 340 Units At A Cost Of $13 Per Unit. Goods Available For Sale During The (2024)
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