The need for the transaction of international currency.

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Answer 1

Question

Chapter 27, Problem 1DQ

To determine

The need for the transaction of international currency.

Expert Solution & Answer

Explanation of Solution

International transactions take place mainly when there are exchanges of goods and services between the nations. The nation which exports receives currency and the nation which imports pays the currency of others or internationally-accepted currency. This is how the normal exchange of currency takes place. The barter system was present before the introduction of money as the medium of exchange. It was the system in which commodities were traded for other commodities. Now, the barter system cannot be found anywhere between the countries. Even if found, it will be a very rare case.

Even though there are no imports or exports of goods and services in the country, the financial market may be linked to other countries. The asset market as well as the share markets is interlinked and any country can make investments in the asset and share market of the country. Thus, as a result, even though there are no imports or exports, the nation can still engage in international financial transactions.

Economics Concept Introduction

Concept introduction:

Currency: It is the form of money used in society as a medium of exchange.

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Students have asked these similar questions

5. We learnt the following equation in the class: Ak = sy - (n + 8)k where y = ko. Now, I transform this equation into: Ak/k = sy/k - (n + 8). I want you to use a diagram to show the steady state solution of this equation (In the diagram, there will be two curves - one represents sy/k and one represents (n + 8). In the steady state, of course, Ak/k = 0). In this diagram, the x-axis is k. What will happen to this diagram if the value of n increases?

Not use ai please

3. A country has the following production function: Y = K0.2L0.6p0.2 where Y is total output, K is capital stock, L is population size and P is land size. The depreciation rate (8) is 0.05. The population growth rate (n) is 0. We define: y = ½, k = 1 and p = . Land size is fixed. L a) Find out the steady state values of k and y in terms of p, the per capita land size.

Answer 2

Question

Chapter 27, Problem 1DQ

To determine

The need for the transaction of international currency.

Expert Solution & Answer

Explanation of Solution

International transactions take place mainly when there are exchanges of goods and services between the nations. The nation which exports receives currency and the nation which imports pays the currency of others or internationally-accepted currency. This is how the normal exchange of currency takes place. The barter system was present before the introduction of money as the medium of exchange. It was the system in which commodities were traded for other commodities. Now, the barter system cannot be found anywhere between the countries. Even if found, it will be a very rare case.

Even though there are no imports or exports of goods and services in the country, the financial market may be linked to other countries. The asset market as well as the share markets is interlinked and any country can make investments in the asset and share market of the country. Thus, as a result, even though there are no imports or exports, the nation can still engage in international financial transactions.

Economics Concept Introduction

Concept introduction:

Currency: It is the form of money used in society as a medium of exchange.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 27, Problem 1DQ

To determine

The need for the transaction of international currency.

Expert Solution & Answer

Explanation of Solution

International transactions take place mainly when there are exchanges of goods and services between the nations. The nation which exports receives currency and the nation which imports pays the currency of others or internationally-accepted currency. This is how the normal exchange of currency takes place. The barter system was present before the introduction of money as the medium of exchange. It was the system in which commodities were traded for other commodities. Now, the barter system cannot be found anywhere between the countries. Even if found, it will be a very rare case.

Even though there are no imports or exports of goods and services in the country, the financial market may be linked to other countries. The asset market as well as the share markets is interlinked and any country can make investments in the asset and share market of the country. Thus, as a result, even though there are no imports or exports, the nation can still engage in international financial transactions.

Economics Concept Introduction

Concept introduction:

Currency: It is the form of money used in society as a medium of exchange.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 27, Problem 1DQ

To determine

The need for the transaction of international currency.

Expert Solution & Answer

Explanation of Solution

International transactions take place mainly when there are exchanges of goods and services between the nations. The nation which exports receives currency and the nation which imports pays the currency of others or internationally-accepted currency. This is how the normal exchange of currency takes place. The barter system was present before the introduction of money as the medium of exchange. It was the system in which commodities were traded for other commodities. Now, the barter system cannot be found anywhere between the countries. Even if found, it will be a very rare case.

Even though there are no imports or exports of goods and services in the country, the financial market may be linked to other countries. The asset market as well as the share markets is interlinked and any country can make investments in the asset and share market of the country. Thus, as a result, even though there are no imports or exports, the nation can still engage in international financial transactions.

Economics Concept Introduction

Concept introduction:

Currency: It is the form of money used in society as a medium of exchange.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 27, Problem 1DQ

To determine

The need for the transaction of international currency.

Expert Solution & Answer

Explanation of Solution

International transactions take place mainly when there are exchanges of goods and services between the nations. The nation which exports receives currency and the nation which imports pays the currency of others or internationally-accepted currency. This is how the normal exchange of currency takes place. The barter system was present before the introduction of money as the medium of exchange. It was the system in which commodities were traded for other commodities. Now, the barter system cannot be found anywhere between the countries. Even if found, it will be a very rare case.

Even though there are no imports or exports of goods and services in the country, the financial market may be linked to other countries. The asset market as well as the share markets is interlinked and any country can make investments in the asset and share market of the country. Thus, as a result, even though there are no imports or exports, the nation can still engage in international financial transactions.

Economics Concept Introduction

Concept introduction:

Currency: It is the form of money used in society as a medium of exchange.

Answer 6

Chapter 27, Problem 1DQ

To determine

The need for the transaction of international currency.

Expert Solution & Answer

Explanation of Solution

International transactions take place mainly when there are exchanges of goods and services between the nations. The nation which exports receives currency and the nation which imports pays the currency of others or internationally-accepted currency. This is how the normal exchange of currency takes place. The barter system was present before the introduction of money as the medium of exchange. It was the system in which commodities were traded for other commodities. Now, the barter system cannot be found anywhere between the countries. Even if found, it will be a very rare case.

Even though there are no imports or exports of goods and services in the country, the financial market may be linked to other countries. The asset market as well as the share markets is interlinked and any country can make investments in the asset and share market of the country. Thus, as a result, even though there are no imports or exports, the nation can still engage in international financial transactions.

Economics Concept Introduction

Concept introduction:

Currency: It is the form of money used in society as a medium of exchange.

Answer 7

Chapter 27, Problem 1DQ

To determine

The need for the transaction of international currency.

Answer 8

Expert Solution & Answer

Explanation of Solution

International transactions take place mainly when there are exchanges of goods and services between the nations. The nation which exports receives currency and the nation which imports pays the currency of others or internationally-accepted currency. This is how the normal exchange of currency takes place. The barter system was present before the introduction of money as the medium of exchange. It was the system in which commodities were traded for other commodities. Now, the barter system cannot be found anywhere between the countries. Even if found, it will be a very rare case.

Even though there are no imports or exports of goods and services in the country, the financial market may be linked to other countries. The asset market as well as the share markets is interlinked and any country can make investments in the asset and share market of the country. Thus, as a result, even though there are no imports or exports, the nation can still engage in international financial transactions.