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Discuss the advantages and disadvantages of the gold standard.Answer: The benefits of the gold standard include: (I) as the supply of gold is restricted, countries cannot comprise high inflation; (2) any BOP disequilibrium can be corrected mechanically through cross-border flows of gold. Alternatively, the major disadvantages of the gold standard are: (I) the world economy can be subject to deflationary pressure because of restricted supply of gold; (ii) the gold standard itself has no method to enforce the rules of the game, and, the result of it, countries may pursue economic policies (such as de-monetization of gold) which are incompatible with the gold standard.
Which currency has to be used in an international acquisition in order to calculate the flows? It can be completed in the local currency or in the currency of the parent compan
Q. Explain Discounting or Present Value Concept? Discounting or Present Value Concept: - According to this concept rupee one of today is more valuable than rupee one a year lat
What is compound interest? Compare compound interest to discounting. Compound interest takes place when interest is earned on interest and on the original principal of an inves
Assume a bank charges a 15.5% APR (annual percentage rate) on credit card holder compounds quarterly. What EAR (effective annual rate) is the bank is charging? What if they change
QUESTION 1 Assuming perfect capital mobility under Mundell-Fleming Model, clearly explain the effectiveness of- i) an expansionary fiscal policy under a fixed exchange rate
Question : (A) The following data for the current year relate to a sterile pack purchased by the Apollo Hospital: Annual demand 90,000 units Ann
given just the sales and profit values, how is the break-even sales calculated?
Identification the management risk: The first and most essential aspect of risk management is recognising what events may occur within a business. It is only when all the poss
Drug companies are not forced to divulge all studies they performed to the FDA. Suppose a drug company knows that the drug has no effect and followed the strategy described in (b1)
discuss the applicability of operation cycle in avegetable growing business
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