Milton Friedman argued that the economy is not in long-run equilibrium if the expected inflation rate __________ the actual inflation rate.

Answers

Answer 1

Answer:  d.a and b

Explanation:

Inflation refers to the general rise in the price of goods and services in the economy and when stable can be considered good for the economy as it signifies that the country's economy is growing.

Milton Friedman argued that for an economy to be in long run equilibrium, the expected inflation rate must be equal to the actual inflation rate. If the expected rate is either lower or higher than the actual rate then the economy is not in equilibrium.


Related Questions

Attorneys who work for a company and are part of the executive or mid-level management team are specifically referred to as _________________________l

Answers

Answer:

In house counsel

Explanation:

In house counsel handle of legal matters of the firm, policy, tax and regulatory matters or may occupy managerial positions

Briefly describe a customer experience you have personally encountered where you were unsatisfactory when you purchased a good.

Answers

Answer: Faulty Mother board ordered on AliExpress

Explanation:

A while back my Laptop developEd power issues wasn’t turning on, took it down to the technician who told me it had board issues as it wasn’t responsive. And the only solution was me getting a new mother board. Well i ended up ordering the board from Abroad on Aliexpress the board arrived damaged Was bent all efforts to get a refund or a replacement was proving difficult as the seller and AliExpress were hell bent on frustrating me. At the end was refunded but that was like over a month was one hell of an experience.

What should be the price of a stock that offers a $4.32 annual dividend with no prospects of growth, and has a required return of 12.5%

Answers

Answer:

The price should be P0 = $34.56

Explanation:

The value or price of a stock today can be whose dividend growth is zero can be calculated using the zero growth model of DDM. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = Dividend / r

Where,

r is the required rate of return

P0 = 4.32 / 0.125

P0 = $34.56

After Xavier and Alyssa deposited nearly $55,000 in a savings account at Bigbux Bank, the bank failed and filed for bankruptcy. Because the Bigbux was an FDIC member bank, Xavier and Alyssa:_______

Answers

Answer: should be protected because their account is fully insured by the FDIC.

Explanation:

From the question, we are informed that Xavier and Alyssa kept about $55,000 in a savings account at Bigbux Bank, the bank failed and filed for bankruptcy but that the bank FDIC member bank.

Based on the above scenario, they'll be protected because their account is fully insured by the FDIC. It should be noted that the Federal Deposit Insurance Corporation helps in insuring several bank deposits and in case of bank failure, the depositors will be paid or the accounts of the bank will have to be transferred to some other bank.

W02_06.
is the popular name for a free-market economy in which business people make most of the
decisions about what products to produce, how many workers to hire, and what prices to charge for goods
and services.
Select one:
a. Communism
b. Marginalism
ec. Capitalism
d. Socialism

Answers

Answer:

it is capitalism

Explanation:

This is so becauae , capitalism is a free market economy where the individual business people do most in the economy by deciding what to produce , workers to hire etc than the government

Suppose that you want to develop a product that can easily be configured in a wide variety of ways. What design approach would be best?

Answers

Answer:

Modular product design

Explanation:

Modular product design is a term used to describes a method or strategy of developing a product, by breaking the product's development into separate parts often referred to as modules, specifically according to their functions and operations such that these modules can be developed separately.

Hence, in this case, to develop a product that can easily be configured in a wide variety of ways. The design approach would be best be Modular product design

The equation of the least-squares regression line for predicting selling price from appraised value is

Answers

Answer:

[tex]\widehat {price}=127.27+1.0466(appraised\ value)[/tex]

Explanation:

The question is not complete, the complete question is attached

An appraised value is the value used estimate the price of a product. Regression analysis is the use of mathematical models and functions to predict a variable with the help of other variables. It shows the relationship between variables. Regression analysis can also be used to estimate, predict or forecast from a model.  

The equation of the least-squares regression line for predicting selling price from appraised value is gotten by adding the constant coefficient and the appraisal coefficient. The equation is given as:

[tex]\widehat {price}=127.27+1.0466(appraised\ value)[/tex]

[The following information applies to the questions displayed below.]
The following financial statement information is from five separate companies.
Company A Company B Company C Company D Company E
December
31, 2018
Assets $ 44,000 $ 34,320 $ 28,160 $ 78,320 $ 120,120
Liabilities 36,080 24,024 15,206 54,040 ?
December
31, 2019
Assets 49,000 35,280 ? 89,180 135,240
Liabilities ? 23,990 16,086 42,806 106,839
During
year 2019
Stock
issuances 6,000 1,400 9,750 ? 6,500
Net income
(loss) 11,630 ? 7,900 15,094 8,877
Cash
dividends 3,500 2,000 5,875 0 11,000
Compute the amount of assets for Company C on December 31, 2019. (Enter losses amount with a minus sign, wherever required.)

Answers

Answer:

= $40,815

Explanation:

For computing the assets first determine the equity for the year 2018 which is shown below:

Equity is

= Total assets - total liabilities

= $28,160 - $15,206

= $12,954

Now the total assets for the year 2019 is

= total liabilities + total equity

= $16,086 + $12,954 + $9750 + $7,900 - $5,875

= $16,086 + $24,729

= $40,815

What is the equilibrium weekly wage and the equilibrium quantity of solar panel installers in the town

Answers

Answer:

Equilibrium wage = 800

Equilibrium quantity = 4

Explanation:

The computation of equilibrium weekly wage and the equilibrium quantity of solar panel is shown below:-

Here as per the graph the equilibrium wage is meet at 800 where equilibrium quantity is lying on 4.

Therefore according to the given situation the equilibrium wage is 800 and the equilibrium wage is 4.

as the quantity demanded and quantity supplied are matched so this we called as an equilibrium

A key aspect to communication plans are that they allow the project manager and the project team to:__________.
A) Meet deadlines more effectively.
B) Effectively control costs on the project.
C) Focus on defect resolution.
D) Actively control the flow of information.

Answers

Answer:

The correct answer is:

Actively control the flow of information. (A)

Explanation:

successful projects rely on communication. Communication entails exchange, discussion, information, technology, advice and teamwork. A good communication plan entails the following:

sets clear guidelines for how information to be sharedoutlines who is responsible for sharing informationoutline who needs to be included in each communication.

There is no definite way for a team to communicate in a project, but a variety of communication methods exist, which includes:

emails, meetings, discussion boards, status reports, to-do lists or task trackers, collaboration apps.

In order to know what type of communication method to choose:

determine what works for the teamuse successful communication methods from similar past projectscheck in with team members and relevant stakeholders.

Reasons why estimating time and cost are important include all of the following EXCEPT:_________
A) To schedule work.
B) To determine how long the project should take and cost.
C) To develop cash flow needs.
D) To determine how well the project is progressing.
E) To help establish a project selection process.

Answers

Answer:

E) To help establish a project selection process.

Explanation: Estimating the time and cost of a project or a business activity is very important as it will to schedule the work, determine the financial requirements of a project,to determine how well the project is performing or progressing etc.

Time and cost of a project are very important to an organisation as they are part of the factors to be analysed and put into consideration when carry or choosing a project.

Calculate ​'s net working​ capital, current​ ratio, and debt ratio at ​31, ​, rounding to two decimal places. At ​31, ​, net working capital was ​, the current ratio was ​, and the debt ratio was . Did ​'s ability to pay both current and total debts improve or deteriorate during the fiscal​ year? Evaluate ​'s debt position as strong or weak and give your reason.

Answers

Question Completion:

The accounts of Granger Services Inc. at January 31, 2016 are listed in alphabetical order:

Accounts payable $12,200

Accounts receivable 17,000

Accumulated depreciation – equipment 6,500

Advertising expense 11,300

Cash 17,400

Common Stock 5,300

Current portion: Long-term note payable 1,900

Depreciation expense – Equipment 1,900

Interest expense 500

Dividends declared 12,500

Equipment 42,000

Long-term note payable 16,000

Other long-term assets 13,700

Prepaid expense 5,900

Retained earnings, Jan 31, 2015 13,300

Salary expense 26,100

Salary payable 3,400

Service Revenue 95,000

Supplies 3,500

Supplies expense 4,600

Unearned Service revenue 2,800

At ​January 31, ​2015, net working capital was $22,600​, the current ratio was ​1.90, and the debt ratio was 0.15.

Requirements as provided in the question

Answer:

Granger Services Inc.

a. Net Working Capital:

Current Assets - Current Liabilities

= $43,800 - 20,300

= $23,500

b.  Current ratio:

Current assets / current liabilities

= $43,800/20,300

= 2.16

c. Debt Ratio:

Total Liabilities/Total Assets * 100

= $36,300/$93,000 * 100

= 0.39 or 39%

d) At ​January 31, ​2016, net working capital was $23,500​, the current ratio was ​2.16, and the debt ratio was 0.39.

e) Grange's ability to pay both current and total debts improved marginally during the fiscal year with less current liabilities vis-a-vis the current assets and more long-term debts as can be discerned from the current ratio and debt ratio respectively.

f) Grange's debt position became weak in 2016 as its debts can be settled with 39% of the total assets as against 2015's 15%.  This implies that whereas, 15% of the assets could settle the debts in 2015, Grange needed 39% of assets to settle debts in 2016.  This is a deterioration for a company that does not want to be highly leveraged.  Otherwise, it is an improvement in debt leverage.

Explanation:

a) Data and Calculations:

Granger Services Inc. Trial Balance as of January 31, 2016:

                                                  Debit           Credit

Cash                                        $17,400

Accounts receivable                 17,000

Prepaid expense                       5,900

Supplies                                     3,500

Equipment                               42,000

Accumulated

depreciation–equipment                             $6,500

Other long-term assets          13,700

Accounts payable                                         12,200

Unearned Service revenue                           2,800

Salary payable                                                3,400

Current portion: Long-term note payable     1,900

Long-term note payable                              16,000  

Common Stock                                              5,300

Retained earnings, Jan 31, 2015                 13,300

Dividends declared                12,500

Service Revenue                                        95,000

Advertising expense               11,300

Depreciation expense

– Equipment                            1,900

Interest expense                        500

Salary expense                      26,100

Supplies expense                   4,600

Total                                       156,400      156,400

Granger Services Income Statement for the year ended January 31, 2016:

Service Revenue                               $95,000

Expenses:

Advertising expense               11,300

Depreciation expense

– Equipment                            1,900

Interest expense                        500

Salary expense                      26,100

Supplies expense                   4,600    $44,400

Net Income                                          $50,600

Retained earnings, January 31, 2015    13,300

Dividends declared                               (12,500)

Retained earnings, January 31, 2016  $51,400

Granger Balance Sheet as of January 31, 2016:

Assets:

Current Assets:

Cash                                        $17,400

Accounts receivable                 17,000

Prepaid expense                       5,900

Supplies                                     3,500

Total Current Assets                               $43,800

Long-term Assets:

Equipment                42,000

Accumulated depreciation

 – equipment            6,500   35,500

Other long-term assets          13,700

Total long-term assets                           $49,200

Total assets                                            $93,000

Liabilities + Equity:

Current Liabilities:

Accounts payable                $12,200

Unearned Service revenue    2,800

Salary payable                         3,400

Current note payable              1,900

Total Current Liabilities                           $20,300

Long-term note payable                            16,000  

Common Stock                      5,300

Retained earnings                51,400

Total shareholders' equity                       56,700

Total Liabilities + Shareholders' Equity $93,000

the loss of producer surplus associated with some sellers dropping out of the market as a result of the tax is

Answers

Answer:

$60

Explanation:

According to information on your question. We are to note that an absence or reduction of suppliers could lead to lower supply.

As in this case, the producer supply loss of $60 was incurred as some sellers dropped out of the market as a result of the tax.

g The beginning cash balance is $15,000. Sales are forecasted at $800,000 of which 80% will be on credit. 70% of credit sales are expected to be collected in the year of sale. Cash expenditures for the year are forecasted at $475,000. Accounts Receivable from previous accounting periods totaling $9,000 will be collected in the current year. The company is required to make a $15,000 loan payment and an annual interest payment on the last day of every year. The loan balance as of the beginning of the year is $90,000, and the annual interest rate is 10%. Compute the excess of cash receipts over cash disbursements.

Answers

Answer:

Excess of cash receipts over cash disbursements is $118,000.

Explanation:

The excess of cash receipts over cash disbursements in a cash budget refers to the amount by which the total cash received is greater than the total cash payments made by a company in a particular period.

The excess of cash receipts over cash disbursements is obtained by deducting the total cash payments from the total cash received, and this can be obtained fo this question as follows:

Cash Budget

Particulars                                                         $                       $        

Cash Receipts:

Cash sales (w.1)                                          160,000

Cash received from credit sales (w.2)      448,000

Accounts receivable                                    9,000  

Total cash receipts (A)                                                           617,000

Cash Disbursement:

Cash expenditures                                  (475,000)

Loan repayment                                         (15,000)

Interest on loan (w.3)                                 (9,000)    

Total cash disbursement (B)                                                 (499,000)    

Excess of cash receipts over

cash disbursements (C = A - B)                                             118,000

Beginning cash balance                                                          15,000  

Ending cash balance                                                              133,000  

Therefore, excess of cash receipts over cash disbursements is $118,000.

Workings

w.1: Cash sales =$800,000 * (100% - 80%) = $800,000 * 20% = $16,000

w.2: Cash received from credit sales = $800,000 * 80% * 70% = $448,000

w.3: Interest on loan = $90,000 * 10% = $9,000

The computation of the excess cash receipts over the cash disbursements is $118,000.

Data and Calculations:

Beginning cash balance = $15,000

Sales forecast = $800,000

Cash sales = $ 160,000 ($800,000 x 20%)

Credit Sales = $640,000 ($800,000 x 80%)

Cash collection from credit sales = $448,000 ($640,000 x 70%)

Accounts Receivable = $9,000

Total cash receipts = $617,000 ($160,000 + $448,000 + $9,000)

Cash expenditures forecast = $475,000

Loan repayment with interest = $24,000 ($15,000 + $9,000)

Total disbursements = $499,000

Excess cash receipts over cash disbursements = $118,000 ($617,000 = $499,000)

Learn more: https://brainly.com/question/8707644

Website promotion methods include:________.
a. banner ads
b. word of mouth
c. newsletters
d. all of the above

Answers

Answer:

All of the above

Explanation:

A website can be promoted through the following methods

- Word of mouth: This involves advertising your website to people by telling them directly the different features of the website and giving them unique reasons why they should visit the website

- Newsletters: This involves writing down the benefits of your website to potential customers, this can be sent to their various emails. This form of advertisement is very essential as it serves as a constant reminder to potential customers to enable them visit your website.

- Banner ads: This is a type of advertising strategy in which features of your website is shown in the form of images. This images are used to compel visitors to check out the website. This form of advertising enables you to showcase your website in an attractive way.

Hence all of the options above can be effectively used to promote a website.

Which of the following statements about overhead variances is false?
a. Standard hours allowed are used in calculating the controllable variance.
b. Standard hours allowed are used in calculating the volume variance.
c. The controllable variance pertains solely to fixed costs.
d. The total overhead variance pertains to both variable and fixed costs.

Answers

Answer: c. The controllable variance pertains solely to fixed costs

Explanation:

For overhead variance, it should be noted that standard hours allowed are used in calculating the controllable variance, standard hours allowed are used in calculating the volume variance and the total overhead variance pertains to both variable and fixed costs.

Therefore, the option that is not true is that the controllable variance pertains solely to fixed costs(option C)

Linda installed a special pool for the hydrotherapeutic treatment of severe arthritis, as prescribed by her doctor. The cost of installing the pool was $19,520, and her insurance company paid $4,880 toward its cost. The pool increased the value of Linda's house by $6,832, and it has a useful life of 10 years. How much of a deduction is Linda entitled to in the year of installation of the pool?

Answers

Answer:Therefore amount of deductions allowable in year of installation = $7,808

Explanation:

Deductions  entitled in the year of installation of pool  =Cost of installing pool -insurance cost - the increase in property value

=$19,520- $4,880 -$6,832

=$7,808

Therefore amount of deductions allowable = $7,808

The account, Stock Investments, is:________.
a. a subsidiary ledger account.
b. a long-term liability account.
c. a long-term investment account.
d. another name for Debt Investments.

Answers

A long term investments

Chik’s Chickens has accounts receivable of $6,333. Sales for the year were $9,800. What is its average collection period?

Answers

Answer:

235.5 days

Explanation:

Chik's chicken has accounts receivables of $6,333

The sales for the year for Chik's chicken is $9,800

The first step is to calculate the receivables turnover

= $9,800/$6,333

= 1.55

Therefore the average collection period for Chik's chicken can be calculated as follows

= 365/1.55

= 235.5 days

Hence the average collection period for Chik's chicken is 235.5 days

"Discuss the financial and operational implications for airlines as they try to offer the newest technology services?"

Answers

Answer with Explanation:

The introducing of newest technology would definitely have financial and operational implications. These implications are given as under:

Financial implications

Cost Reduction: The operational costs would be reduced by investing in the newest technology which will make the cash flow position better with time. Benefits Lost Risk: It is possible that the investment might not bring value to the company because of any emergent problems, whose mitigation requires incurring of additional costs.Cost Advantage: The lower operational cost can drive higher sales because the company will be charging lower fare prices to its customer thus giving Cost Advantage.Investing in newest technology might not bring value to the company because it is not attracting potential customers but it might pay off later in the form of developed customer loyalty.

Operational implications

Implementing a newest technology might improve the operational processes through which the customer go through, which would increase the customer satisfaction.Implementation problems of newest technology.Long term Customer retention will easy for the airline company due increased customer satisfaction.Operational efficiencies related to services will process the customer fastly saving the companies precious time wasted in these process thus reducing the future human resource cost. Using robots might bring adverse marketing because the people might think that the human resource are no more required and risks associated with the acceptance of technology due to cultural differences. Better Security systems would increase the security level and safety levels for the customers.

Temple Company has $500,000 of 9% bonds that pay interest on June 30 and December 31 and have an authorization date of January 1, 2019. The company issues the bonds on March 1, 2019, at par, plus accrued interest.Prepare the journal entry to record the issuance of the bonds.

Answers

Answer:

Dr Cash ($500,000 * $103 / $100) $507,500

Cr Bond Payable                                           $507,500

Cr Bond premium                                          $7,500  

Explanation:

The bond was issued at 1st March and the interest due is at 31st of December which means that first 2 month interest has been accrued and thus requires journal entry to record:

Dr Interest Expense ($500,000 * 9% * 2/12)  $7,500

Cr Interest Payable                                                $7,500

At the issuance date, the price of the bond is $103 and this is the price that was received when the bond was issued, hence the cash collected would be:

Cash Collected = ($500,000 * $103 / $100) = $515,000

$7,500 would be the interest accrued which means:

Cash collected for bond = $515,000 -  $7,500 = $575,000

Now the entry would be:

Dr Cash ($500,000 * $103 / $100) $507,500

Cr Bond Payable                                           $507,500

Cr Bond premium                                          $7,500  

A registered representative may never A) act as a buyer's agent. B) act as a sales agent. C) approve advertising. D) act as a broker.

Answers

Answer: C) approve advertising

Explanation: A registered representative may be described as a licensed official equipped with the necessary training required to serve as a broker by functioning in its capacity to help and assist clients trading such as the purchase and sale of securities such as bonds, stock and mutual funds. Hence, registered representatives could be described as brokers, buyers and sales agents of different securities depending on the nature of the license held by the representative. Advert approval is thus not a function of a registered representative

If a homeowner wants to sell his property to an adult child for $1, may a sales agent be involved in that transaction?

Answers

Answer:

Of course a sales agent can be involved, although they will probably charge a fixed amount and not a sales percentage. Many people probably need the help of a sales agent to fill out legal forms, including contracts, etc. Not everyone has the knowledge to prepare them or simply fill them out, and a sales agent can be helpful.

Jen agrees to buy Kev's Dirt Bike business on the express condition that Valley Credit Union approves the financing. This approval is:______.
A) a concurrent condition.
B) a condition precedent.
C) a condition subsequent.
D) an implied condition.

Answers

Answer:

B) a condition precedent.

Explanation:

A condition precedent is an event or state of affairs that is required before something else will occur. It is a condition precedent because, without the approval of the loan which should come first, Jen would not be interested in buying the Dirt Bike business owned by Kev.

What is the present value of $9,500 payable at the end of 7 years? Use a nominal rate (monthly compounding) of 8.25%.

Answers

Answer:

PV= $5,342.89

Explanation:

Giving the following information:

Future value (FV)= $9,500

First, we need to calculate the monthly interest rate (i) and the number of periods (n):

i= 0.0825/12= 0.006875

n= 7*12= 84

To calculate the present value, we need to use the following formula:

PV= FV/(1+i)^n

PV= 9,500/(1.006875^84)

PV= $5,342.89

The "invisible hands" ability to coordinate the decisions of the firms and households in the economy can be hindered by

Answers

Answer: Government actions that distort prices

Explanation:

The "invisible hands" ability to coordinate the decisions of the firms and households in the economy can be hindered by government actions that distort prices.

It should be noted that when econoimic activities are guided bhy the "invisible hand", the prices of goods and services show how much the society values such good.

determine the present value of 15000 is to be received at the end of eight years and the discount rate is 9%

Answers

Answer:

PV= $7,528

Explanation:

Giving the following information:

Future value= $15,000

Number of periods= 8 years

Interest rate= 9% compounded annually

To calculate the present value, we need to use the following formula:

PV= FV/(1+i)^n

PV= 15,000/(1.09^8)

PV= $7,528

You are the operations manager for a small kayak and canoc manufacturer (Valley Kayaks) locate on the Pacific Northwest (Oregon) Lately your company has experience product quality problems. Simply put, the kayaks that you produce occasionally have defects and require rework. Consequently, you have decided to assess the impact of introducing a quality management (TQM) program. After discussing the potential effects with representatives from marketing, finance, accounting, and quality, you arrive at a set of estimates (contained in the following table). Top management has told you that it will accept any proposal that you come up with, provided that it improves the return on assets measure by at least 30%. Show your calculations and then determine if you would go forward with this proposal?
Category Current Values Estimated Impact of TOM
Sales $2,000,000 5% + (improvement)
Cost of goods sold $1,500,000 0%
Variable expenses $300,000 8.25%-(reduction)
Fixed expenses $100,000 0%
Inventory $30,000 25%
Accounts receivable $100,000 10%
Other current assets $500,000 0%
Fixed assets $400,000 0%

Answers

Answer:

I would go forward with the proposal as it improves the return on assets by more than 125%

Explanation:

a) Data:

1. Category               Current Values     Estimated Impact of TOM

Sales                          $2,000,000          5% + (improvement)

Cost of goods sold    $1,500,000          0%

Variable expenses       $300,000           8.25%-(reduction)

Fixed expenses            $100,000            0%

Inventory                        $30,000            25%

Accounts receivable    $100,000            10%

Other current assets  $500,000            0%

Fixed assets                $400,000            0%

b) Calculations:

1. Category               Current Values     Estimated Impact of TQM

Sales                          $2,000,000          $2,100,000

Cost of goods sold    $1,500,000          $1,500,000

Variable expenses       $300,000            $275,250

Fixed expenses            $100,000             $100,000

Returns                         $100,000             $224,750

Current Assets:

Inventory                        $30,000               $37,500

Accounts receivable    $100,000              $110,000

Other current assets  $500,000            $500,000

Fixed assets                $400,000            $400,000

Total assets              $1,030,000           $1,047,500

Return on assets = Returns/Total Assets * 100    

                            =      9.71%                     21.46%

Improvement = Return on assets with TQM minus Current Return on assets divided by Current Return

= ($224,750 - $100,000) / $100,000 * 100

= 1.25 or 125%

Improvement > 30% from 9.71 to 21.46%, which is more than 100% increase.

Juan and Rita are having trouble with new employees Peters and Jackson, indicating which of the four targeted areas of change is most needed?

Answers

Answer:

people

Explanation:

There are four areas that are subject to change as the organization frequently tries to adjust to internal and external pressures. These four areas includes:

1. Strategy

2. People

3. Structure

4. Technology

However, in this case, it has been established that, Juan and Rita are having trouble with new employees Peters and Jackson, this is implies or indicates that areas of change is most needed is PEOPLE, because in this case, the problem is between people.

Explain the alternative hedging techniques of Leading & Lagging, Cross-Hedging and Currency Diversification

Answers

Answer:

See answer and explanation below.

Explanation:

These are explained as follows:

Leading & Lagging techniques

Leading and lagging hedge techniques refer to the strategies employed to adjust the timing of a payment request or disbursement in order to show the expectations about future currency movements.

Specifically, leading implies that a payment is made quickly or expedited, while lagging implies that a payment is deferred.

Cross-Hedging

Cross-hedging is an act of hedging risk whereby two different currencies which have a strong positive correlation between are used.

Cross-hedging is done by taking opposing positions in the two currencies in order to reduce the associated with holding just one currency.

Currency Diversification

Currency Diversification refers to an investing or financing strategy in which more than one currency is used or held as a portfolio.

The primary aim of currency diversification is to reduce the exposure to exchange rate movement or risk usually associated with holding a single foreign currency.

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