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What is the difference between currency depreciation and appreciation?
depreciation is the reduction in the value of an asset due to usage, passage of time, wear and tear, technological outdating or obsolescence, depletion, inadequacy, rot, rust, decay or other such factors. Appreciation is a term used in accounting relating to the increase in value of an asset.
What are the key differences between a local currency and a base currency in the context of international trade and finance?
In international trade and finance, a local currency is the currency used in a specific country, while a base currency is a widely accepted currency used as a standard for comparison. Local currencies are used for transactions within a country, while base currencies are used as a reference point for exchange rates and pricing in international trade.
In a crisis not caused by macroeconomic imbalances economists are uncertain whether a country should try to guard against recession or try to defend its currency. Why are these mutually exclusive and?
In a crisis not driven by macroeconomic imbalances, prioritizing recession defense often involves implementing expansionary fiscal or monetary policies, which can lead to increased inflation or currency depreciation. Conversely, defending the currency typically requires contractionary measures, such as raising interest rates or cutting public spending, to restore confidence in the currency's value. These opposing strategies can create a dilemma, as efforts to stimulate the economy may undermine currency stability, while measures to defend the currency could exacerbate economic contraction. Thus, the choice between the two reflects a trade-off between short-term economic growth and long-term currency stability.
What is the difference between yen and yuan Chinese currency?
Yen is the Japanese currency whereas yuan is the currency used in China.
What is the difference between currency swaps and cross currency swaps?
http://en.wikipedia.org/wiki/Currency_swap
What are the differences between straight line depreciation and double declining depreciation methods?
The main difference between straight line depreciation and double declining depreciation methods is the way they allocate the cost of an asset over its useful life. Straight line depreciation spreads the cost evenly over the asset's life, while double declining depreciation front-loads the depreciation expense, resulting in higher depreciation in the early years and lower depreciation in later years.
What is differences between currency future and currency future contracts?
"Futures" and "Futures contracts" are the same thing.
What is the difference between depreciation and accumulated depreciation?
Depreciation is for a particular year (say for Year 3). Accumulated depreciation is the aggregate of depreciation from the beginning (say from Year 1 to Year 3)
Distinguish between depreciation policy and the concept of depreciation?
Depreciation policy is management thing that what depreciation method to use and how much depreciation to charge to each asset. Depreciation concepts are concepts which govern the depreciation process which management cannot change they are universal rules to follow depreciation that how straight line depreciation work etc.
How does currency depreciation affect companies?
currency depreciation is a double-edged sword for corporations, on the one hand it makes all your imports MORE expensive since your currency can buy LESS goods with the same amount of money, on the other, it makes your goods LESS expensive to consumers all around the world because their currency can buy MORE of your products with the same amount of their money, so if a company is a major exporter it will be positively affected, if it is a major importer, it will be affected negatively. if it is in the space between the two (which is usually the case) the results will vary depending on the elasticity of the product, the profit margin .... (between + and - )
What is the differences between stock market and currency exchange market?
Ownership in companies is traded in the Stock Market while ownership of foreign money is traded in the currency exchange market.
What is the difference between currency depreciation and appreciation?
depreciation is the reduction in the value of an asset due to usage, passage of time, wear and tear, technological outdating or obsolescence, depletion, inadequacy, rot, rust, decay or other such factors. Appreciation is a term used in accounting relating to the increase in value of an asset.
What is the difference between accounting depreciation and tax depreciation?
In accounting, depreciation is an allocation of a previous expenditure, while in economics depreciation represents a decline in current value.
The difference between the cost of an asset and the accumulated depreciation for that asset is called?
Book Value is the difference between the cost of an asset and the accumulated depreciation of that asset.
What is the Difference between accumulated depreciation and depreciation?
Depreciation expense is a nominal account which will goin to net income at the end of term. Accumulated depreciation is a contra account with capital assets which shows up in balance sheet.
How do you account difference between depreciation as book and depreciation as tax?
This will be found under "deferred taxes" on the income statement.
Why is there a difference in currency value?
The main determinant is differences in total factor productivity between two countries. The details are too complicated for a site such as this.
