All categories

2 years ago

Which currency is normally used for conducting global trade between two countries? currency of the seller

Business

2 answers:

Kryger [21]2 years ago

7 0

Often times the currency used is the currency of the seller.

Alex Ar [27]2 years ago

6 0

Answer:

currency of the stronger country

Explanation:

International trade contracts between two countries are usually made in the currency of the country that has the largest hegemony of the world economy, in this case the US. Most contracts between two countries, even when the US is not theirs, are made in dollars. The dollar has become a standard currency for international trade contracts. For example, contracts between Brazil and China are traded in dollars.

This is not a rule, but it is usually so, except in some economic blocs, such as the European Union, where the Euro is the current currency of contracts.

You might be interested in

A company issued 5-year, 7% bonds with a par value of $500,000. The market rate when the bonds were issued was 6.5%. The company

san4es73 [151]

Answer:

The correct answer is $17,000.

Explanation:

According to the scenario, the given data are as follows:

Bonds percent = 7%

Par value of bonds = $500,000

Market rate = 6.5%

Cash received = $505,000

So, we can calculate the amount of recorded interest for semiannual interest period by using following formula:

First we calculate the premium on bonds,

So, Premium on bonds = Cash received - Par value of bonds

= $505,000 - $500,000

= $5,000

So, straight line amortization = Premium on bonds ÷ years

= $5,000 ÷ 5

= $1,000

So, Amount of interest expense for first semiannual is as follows:

Amount of interest = ( Par value of bonds × Bonds percent ) ÷ 2 - (straight line amortization ÷ 2)

= ( $500,000 × 7% ) ÷ 2 - ( $1,000 ÷ 2 )

= $17,500 - $500

= $17,000.

4 0

2 years ago

Agnes pays state income tax equal to 3.75% of her federal taxable income. She pays federal income tax equal to 28.4% of her fede

max2010maxim [7]

____________________________________________________

Answer:

Your answer would be D). $2,040.00

____________________________________________________

Explanation:

To find the state income tax in this situation, we would need to be doing a lot of multiplying and dividing in order to get our answer.

We would use this equation:

t = px

t = Total paid

p = percentage

x = unknown

In this case, we would need to find what x is.

Let's give you the equation:

15,449.60 = 28.4x

We would need to get x by itself, so we would divide by 28.4. But first, we would need to move the decimal place from 28.4 2 times to the left, so we would be dividing by .284

$\frac{15449.60}{.284} = 54,400$

Now, that;;s the federal income tax, but we have to find the state income tax. We would use 54,400 and miltiply it by 3.75 (move 2 decimal places to the left to get 0.0375).

$54,400*0.0375= 2,040$

Agnes payed $2,040 in state income tax.

D). $2,040 should be your FINAL answer.

____________________________________________________

8 0

2 years ago

Andrew has been asked to estimate future cash flows for his company. He is having a hard time remembering how to estimate future

Sonja [21]

Answer: Andrew should look to find the information in SFAC No. 7. The level of the conceptual framework that his new knowledge will apply to is level 3.

Explanation:

From the question, we are informed that Andrew has been asked to estimate future cash flows for his company and that he is having a hard time remembering how to estimate future cash flows from his accounting classes.

Andrew should look to find the information in SFAC No. 7. The level of the conceptual framework that his new knowledge will apply to is level 3.

7 0

2 years ago

MasterCom Corporation corporation produces a semiconductor chip used on communications. the direct materials are added at hte st

Mariana [72]

Answer:

a. The equivalent units of work done in June= 450,000

b. The total manufacturing cost per chip= $ 12.199= $ 12.2

Explanation:

a. The equivalent units of work done in June

Units Started 475,000

Units Completed 425,000

Units still in Process completed 50% = (50,000 * 50%) 25,000

The equivalent units of work done in June = 450,000

b. The total manufacturing cost per chip

Direct material cost $935,750

Conversion costs $4,554,000

The total manufacturing $ 5489750

The total manufacturing cost per chip = $ 5489750/450,000

The total manufacturing cost per chip = $ 12.199= $ 12.2

3 0

2 years ago

Suppose investors can earn a return of 2% per 6 months on a Treasury note with 6 months remaining until maturity. The face value

N76 [4]

Answer: Selling Price = $9803.92

Explanation:

Given:

Treasury bill will provide 2% return in every 6 months.

Time = 6 months

Rate of return = 2% per 6 months

Selling Price of Treasury bill = $Face Value / (1 + Rate of Return)^{time period}$

Selling Price = $$10,000 / (1 + 0.02)^{1}$

Hence price we would expect a 6-month maturity Treasury bill to sell for is $9803.92

5 0

2 years ago