The price of one currency expressed in terms of another currency is called the:
Exchange rate - the rate at which the currencies are exchanged. This rate can vary frequently, some-times several times per hour, depending on circumstances.
The interest rate is the rate charged on loans - the cost of borrowing.
The base rate is the basic interest rate used for agreeing loans within an economy. This rate is nor-mally set by the government or the central bank. Loans within that economy will usually be at a higher rate than the base rate, often much higher.
The equilibrium rate (more commonly 'equilibrium price') is the rate at which supply and demand meet, not necessarily related to currency.
Monetary policy deals with:
Government decisions and actions regarding the level of interest rates and supply of money in the economy.
Fiscal policy relates to taxation and its relationship to government expenditure.
The other two suggested answers: exchange rates and unemployment rates are a factor of other poli-cies; the size of coins and banknotes is beyond the scope of your syllabus and my knowledge. :)
Which of the following are examples of renewable resources?
Both wind power and hydro-electric can be used many times over - they are renewable - wind, riv-ers, tides return each day, more or less.
On the other hand, coal, oil as well as wood, turf and gas are non-renewable - that is, there are lim-ited stocks and they will run out.
Many economies are now switching to use of renewables to generate electricity, heat, etc
Which of the following are examples of non-renewable resources?
Coal and oil are the correct answers. These are finite resources and will run out some day.
The others shown are renewables.
'The costs of business activities which are not reflected in the costing of a product or service and paid for by consumers, but which are borne by the wider community -- such as the costs of pollution and associated ill health, traffic congestion or environmental degradation' are known as:
We are now aware that the cost of externalities to society are considerable. A simple example would be that proximity to flow of motor vehicles is likely to increase ill-health requiring state-funded medical services where they exist, to treat at state (taxpayers') expense those who become ill. In the UK the number of people affected this way is believed to be numbered in the tens of thousands an-nually. Thus some businesses' cost structures do not reflect their true cost to society.
Another example would be the discharge of untreated waste into rivers or the sea, where the com-panies undertaking these activities may not be contributing financially to the cleaning up required.
In future years there is likely to be much debate about this, as some people will attempt to find ways to make companies pay the full cost of running their businesses.
