Answered: Around the world oil is priced…

Around the world oil is priced consistently in United States dollars. In economic terms this is an example of: A. medium of exchange B. store of value C. flexible values D. units of account

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: What are foreign exchange markets? Why does the State Bank of Vietnam intervene in the foreign…

A: When economies are open to trade, they interact in international market at a specific exchange rate.

Q: Who issues currency in India?

A: Central Bank of a country act as a monopoly in issuing currency of a country.

Q: One of Fiji's major trading partners is Australia. If Australia's GDP rises, the demand for Fiji's…

A: In the international market, a change in the market condition of a country will affect the GDP or…

Q: Does foreign exchange market produce identical products

A: The foreign exchange market is a market where in which foreign currency are bought and sold. It is…

Q: Briefly explain the following translation methods: i. Translating from foreign to functional…

A: Currency translation: Currency translation is the process of converting one currency in terms of…

Q: In this system, there is no government intervention that will affect the exchange rates. a. Managed…

A: The rate at which one currency can be exchanged for another currency is known as an exchange rate.

Q: What factors determine exchange rates? Use relevant examples and charts to support your answer

A: Exchange rates are one of the major indicators of a nation's economic health that are closely…

Q: True or false The only disadvantage the E.U. has over the U.S., in terms of being an Optimum…

A: Optimal currency area: When a single currency created resulted in the the greatest economic benefit…

Q: WHAT IS THE IMPORTANCE OF EXCHANGE RATE IN OUR ECONOMY

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: In the picture below is the table to answer this question. The highlighted one is my guess which is…

A: As given in the table in 2014 $1 USD = $1.25 CAD In 2015 $1 USD = $1.35 CAD In 2016 $1 USD = $1.45…

Q: In your opinion what are the reason devalution of Pakistani currency against foreign currency ?

A: Devaluation of currency is the reduction in the value of a country’s local currency as compared to…

Q: Foreign Direct Investment results in the following benefits: Select one: a. Higher productivity b.…

A: A foreign direct investment (FDI) is an investment made by a firm or individual in one country into…

Q: State reasons why countries renominate their currency

A: The process of voluntarily adjusting the face value of circulating currency is known as…

Q: Why is it necessary to know the process and policies foreign exchange rate?

A: In International trade, exchange rate is defined as the rate at which the currency of one country…

Q: You have (Malaysia ringgit 2000) In hand you will travel domestically or oversea? Based on the…

A: Currency: It refers to the set value of money by the different economies. The more the value of the…

Q: ite and explain the main uses of foreign exchange markets for international business.

A: The marketplace where participants can buy, sell, trade, and speculate on currencies is known as the…

Q: On August 8, 2000, Zimbabwe changed the value of the Zimbabwe dollar from Z$38∕US$ to Z$50∕US$.…

A: The exchange rate is the rate at which one currency is exchanged with the other. We have been given…

Q: Changes or variations in Foreign Exchange Rates can create a lot of uncertainties for businesses. As…

A: Most businesses import and export their goods all over the world because we live in a global…

Q: 8) Imports A) bring foreign exchange, and thus they are registered as credit in the balance of…

A: The balance of payments includes both the current and capital accounts.The current account is made…

Q: Explain the effect of the terrorism of Syria on Syria currency exchange.

A: The conversion of one country's currency into another is known as foreign exchange (or forex). The…

Q: What effect will a change in the price of oil have on the foreign exchange market of a developing…

A: The foreign exchange market is a decentralized global marketplace where currencies are…

Q: Use theories of exchange rates to explain why the value of US Dollar has been falling recently.

A: In the context of the US dollar, currency depreciation refers to the dollar's value falling in…

Q: Write a essay about why El Salvador should NOT adopt bitcoin as a legal tender and listen to the…

A: El Salvador has become the first country in the world to adopt Bitcoin as legal tender, a move that…

Q: Who are the main participants in the foreign exchange markets? What is the role/interest of each?

A: The foreign exchange market, sometimes called the FX market or the forex market, is a worldwide…

Q: what are foreign exchange markets and what is their most important function and its performance

A: foreign exchange markets The foreign exchange market is a market in which there will be a continuous…

Q: What factors will shift the supply and demand for currency?

A: According to economic definitions, money is a good that acts as both a store of value and a means of…

Q: Draw the foreign exchange market for euros in terms of pounds. Label the equilibrium exchange rate…

A: Since nothing has been mentioned, we will answer the first three parts only. Please resubmit the…

Q: What are the advantages of using gold standard? What is disadvantages? Picture out the economic…

A: The gold standard is a mechanism in which the value of a country's currency is directly related to…

Q: Explain THREE (3) types of participants in a foreign exchange market.

A: The foreign exchange market is the global market in which currency exchange rates are determined all…

Q: Why does exchange rates change.

A: Foreign exchange rates are determined by supply and demand. Increased demand for British goods, for…

Q: why do we need foreign exchange, describe the concept of apprciation, depreciation, revaluation, and…

A: The foreign exchange rate determines the rate at which one currency can be traded for another. It is…

Q: What are some of the reasons central banks and treasuries enter the foreign exchange markets, and in…

A: A central bank is a financial organization that oversees the monetary policy and controls the money…

Question

Around the world oil is priced consistently in United States dollars. In economic terms this is an example of:

A. medium of exchange

B. store of value

C. flexible values

D. units of account

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Cite and explain the main uses of foreign exchange markets for international business.
Why some countries are using thin film interference effect in the currencies?
A strong US dollar tends to A. Reduce exports to foreign buyers B. Reduce imports from foreign sellers
How much damage can Saudi Arabia do to the United States economy if they started selling their Oil using another type of currency rather than the US dollar?
Most payments in the United States for goods and services are made using A. currency. B. gold. C. checking account deposits. D. bitcoins.
You are a U.S. importer who buys goods from many different countries. How many U.S. dollars do you need to settle each of the following invoice 1,000,000 Australian dollars for wool blankets (exchange rate: A$1=$.769 Domestic currency value = foreign current price x exchange rate USD = 1,000,000 AD x .769 USD exchange rate = 769,000 USD Now help me with the following questions based on the previous data. Also help me to understand, how the percentage is calculated to solve a and b What is the dollar value of the invoices in the previous exercise if the dollar: a. depreciates 10 percent against the Australian dollar b. appreciates 10 percent against the British pound
Please don't send hand written answer.thak yoy
please see image
balance of payments issued by a country: deficit or surplus?
Suppose country A’s goods become more popular with foreign consumers, and country B’s less so. How would this affect each country, assuming that they share a common currency? What are the pros or cons for each country?
Why should a savvy manager learn about foreign exchange?
Economics A country that allows demand and supply to determine the value of its currency is said to have a Fixed rate currency A managed float system Floating currency A Bretton Woods system