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They both compare inventory on hand to sales volume. While days supply better lends itself to units and turn rate better relates to cost, the comparison is easy to see if you sold one product (or perhaps a product with the same cost in several versions, like different colors). If your annual sales volume was 360 units at a cost of $1, and you had 30 units on hand valued at $30. You can pretty quickly see that you have a 30 day supply and your inventory turns 12 times per year. If however, you sold products with greatly varying costs, and your inventory mix was not reflective of your sales mix, days supply and turns could yield very different pictures.
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Explain why the FED cannot set intermediate targets in terms of both monetary aggregates and interest rates?
Monetary aggregate is a goal of money supply. Interest rate is a goal of a constant rate. To hold a specific money supply the interest rate would fluctuate. To hold a specific interest rate the money supply would fluctuate. So they can not work together.Check this out and read 11.2 through 11.4http://www.pitt.edu/~jduffy/econ280/lec1213.pdf
What is the ultimate impact on the money supply of an increase in the discount rate?
The increase in the discount rate will cause the money supply to reduce in growth
How does raising the discount rate affect the money supply?
Decreases the money supply
How are your breathing rate and pulse rate related?
The breathing rate and pulse rate are related proportionally. If the breathing rate increases, so does the pulse rate. The pulse rate is an indication of the breathing rate.
Rate is related to?
Rate can mean speed
What factors influence freight rate in transport?
how freight rate affect supply of transport
How is currency exchange rate decided?
The currency exchange rate is decided by the supply and demands of the market. The price goes up when the demands is greater than the supply.
What effect does an increase in the money supply have on inflation?
An increase in the money supply shifts the money supply curve to the right. If you look on your graph, you will see that an increase in money supply will cause the interest rate to decrease. Here's why: Fed increases money supply-->excess supply of money at the current interest rate -->people buy bonds to get rid of their excess money-->increase in the prices of bonds --> decrease in the interest rate.
What is the unit rate for 2 days out of 8 days?
There is no rate, but there is a fraction: 1/4
What are the factor that effect money supply?
Bank rate
What is the rate called where The Federal Reserve can control the supply of money by adjusting the interest rate it charges the borrowers.?
discount rate
How are a rate and a unit rate related to a ratio?
my dick will answer
