The capacity to estimate the loss's magnitude and the likelihood of it.
What is the risk's likelihood and magnitude?Magnitudes of Likelihood The likelihood of each Unexpected Outcome occurring serves as a link between severity and risk. If a given outcome is more likely to occur, it has a higher risk, and if it is less likely, it has a lower risk.
How is the likelihood of a risk determined?The procedure: Risk severity is proportional to risk magnitude. Then, you could say that a risk magnitude of less than 15 is unacceptable and a risk magnitude of less than 5 is acceptable.
What does a risk assessment mean by likelihood?On a risk matrix, the probability of the most likely outcome occurring in the event of a hazard is referred to as likelihood. To put it another way.
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which economic choke point allows goods to move from the interior of both the u.s. and canada to the atlantic ocean?
The Panama Canal is the economic choke point allows goods to move from the interior of both the US and Canada to the Atlantic ocean.
An economic choke point is a situation in which a key sector of the economy is unable to function properly due to a lack of key resources. This can often lead to a domino effect, whereby other sectors of the economy are also adversely affected.
A classic example of an economic choke point is the oil crisis of the 1970s, when a key resource (oil) became scarce and caused a ripple effect throughout the global economy.
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Determine the effective tax rate for a taxable income of $23,470. round the final answer to the nearest hundredth.
a. 11.12%
b. 12.00%
c. 13.49%
d. 15.63%
The effective tax rate for a taxable income of $23470 is 12.00%. The final answer is $2800 would be the tax amount. So the correct option is (b).
What is the Effective Tax rate?
The effective tax rate represents the percent of income that an individual or corporation owes/pays in taxes. It is the average rate at which their earned income such as wages and unearned income such as stock divisends are taxed.
For corporations it is the rate they pay on their pre-tax profits while the statutory tax rate is the legal percentage established by law. It typically refers to only federal income tax.
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Answer:
11.12%
Explanation:
The center for business analytics is considering a refund policy for no-shows. No refund would be given for members who do not attend, but non members who do not attend will be refunded 50% of the price. Build a spreadsheet model that calculates a profit or loss based on the number of nonmember registrants. Account for the fact that, historically, 25% of members who registered do not show and 10% of registered non members do not attend. The center pays the caterer for breakfast and lunch based on the number of registrants (not the number of attendees). However, the center only pays for parking for those who attend. What is the profit if each corporate member registers their full allotment of tickets and 127 nonmembers register? if required, round your answers to two decimal places
The profit if each corporate member registers their full allotment of tickets and 127 nonmembers register is $2,288.25.
How to find the profit?Total revenue $9,525
($75×127)
Variable costs:
Registration Cost per person $8.50
Continent all breakfast per person $4
Lunch per person $7
Parking per person $5
Total variable cost per unit $24.50
Total variable cost $3,111.50
($24.50×127)
Number of non-member absent 12.7
(10%×127)
Refund cost per person $37.50
(50% × $75)
Total refunds $476.25
($37.50×12.7)
Fixed Cost:
Variable cost of corporate members $1,225
($24.50×50)
Rental cost of the auditorium $150
Speakers $2,400
Total fixed cost $3,775
Number of corporate members absent 12.5
(25%×50)
Number of non-member absent 12.7
(10%×127)
Total number of persons absent 25.2
Cost saving due to absent person $126
(25.2×5)
Net Profit $2,288.25
($9,525- $3,111.50- $476.25-$3,775+$126)
Therefore the profit is $2,288.25.
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The complete question is:
The University of Cincinnati Center for Business Analytics is an outreach center that collaborates with industry partners on applied research and continuing education in business analytics. One of the programs offered by the center is a quarterly Business Intelligence Symposium. Each symposium features three speakers on the real-world use of analytics. Each of the corporate members of the center (there are currently 10) receives five free seats to each symposium. Nonmembers wishing to attend must pay $75 per person. Each attendee receives breakfast, lunch, and free parking. The following are the costs incurred for putting on this event:
Rental cost for the auditorium: $150
Registration Processing: $8.50 per person
Speaker Costs: 3 $800 $2,400
Continental Breakfast: $4.00 per person
Lunch: $7.00 per person
Parking: $5.00 per person
The Center for Business Analytics is considering a refund policy for no-shows. No refund would be given for members who do not attend, but for nonmembers who do not attend, 50% of the price will be refunded. Build a spreadsheet model in Excel that calculates a profit or loss based on the number of nonmember registrants.
Extend the model you developed for the Business Intelligence Symposium to account for the fact that historically, 25% of members who registered do not show and 10% of registered nonmembers do not attend.
The center pays the caterer for breakfast and lunch based on the number of registrants (not the number of attendees). However, the center only pays for parking for those who attend.
What is the profit if each corporate member registers their full allotment of tickets and 127 nonmembers register?
from time to time, some of the activities within the eight major functions of marketing are eliminated to provide for a more effective marketing process. t or f
The answer is true. Selling is a marketing function that entails communicating with potential customers and pursuing sales leads. Marketing professionals must pursue sales leads with tact.
Which allows them to build relationships with potential customers. The first step in developing a marketing strategy is to identify an external factor — the ideal people for your company to market to. Begin by conducting research on your intended audience. Look for patterns in the demographics and interests of sales current or prospective customers. Internal reporting systems, marketing research systems, marketing intelligence systems, and marketing models are the four components of a marketing information system.
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what is interest? a. payment for the use of money. b. an equity investment. c. return on capital. d. loan.
Interest is nothing but Payment for the use of money.
Why is it called equity investment?Equity in the context of stock market investing refers to the ownership shares of a corporation. In plainer language, it is the entire sum of money that a shareholder is entitled to receive in the event that all of a company's liabilities are settled and its assets are sold.
An equity investment is cash put into a business through the purchase of its stock on the stock exchange. On a stock exchange, these shares are typically traded.
Equity capital is money invested in a company by buyers of common or preferred stock. This is an illustration of a business's primary finance, to which debt financing may be added.
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a house was listed for sale at $184,900. the seller received $171,000 after paying the broker a 5% commission. what was the selling price of the property?
If a house was listed for sale at $184,900. the seller received $171,000 after paying the broker a 5% commission. The selling price of the property is $180,000.
What is selling price?Selling price can be defined as the actual price at which an item is sold.
Now let find the selling price using this formula
Selling price = Selling price received by seller / ( 1- Commission rate)
Where:
Selling price received by seller = $171,000
Commission = 5%
Let plug in the formula
Selling price = $171,000 / (1- 0.05)
Selling price = $171,000/.95
Selling price = $180,000
Therefore the selling price is the amount of $180,00
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leskar bank has $2 million in rate-sensitive liabilities and $3 million in rate-sensitive assets. leskar's gap ratio is .
leskar bank has $2 million in rate-sensitive liabilities and $3 million in rate-sensitive assets. leskar's gap ratio is 1.5.
What is gap ratio?How much profit is recorded depends on the ratio of a company's rate-sensitive assets to its liabilities.A company must divide the whole value of its interest-sensitive assets by the total value of its interest-sensitive liabilities to get its gap ratio. The company may display this quotient as a decimal or as a percentage once it obtains it.The primary instrument for identifying and managing interest rate risk across the whole bank is the Interest Rate Gap Report (IRGap). To assess and manage interest rate risk exposure, especially bank repricing and maturity imbalances, interest rate sensitivity (or interest rate gap) analysis is utilised.Gap ratio = rate-sensitive assets / interest-sensitive liabilities
= 3 / 2 = 1.5
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If a business decides to act outside of the prevailing ethical norms of that community.
Normative ethics is the branch of ethics that Ingrid's beliefs reflect. If a company decides to behave outside of the community's accepted ethical norms.
What are Normative ethics means?Normative ethics is the study of ethical behavior and the part of philosophical ethics that addresses concerns about how one ought to conduct morally. Normative ethics differs from meta-ethics in that the former investigates moral standards and the metaphysics of moral facts, whilst the latter investigates the meaning of moral language and the metaphysics of moral facts. Similarly, normative ethics differs from applied ethics in that the former is concerned with 'who ought one to be rather than the ethics of a particular topic. Normative ethics differs from descriptive ethics in that the latter is an empirical study of people's moral ideas. In this setting, normative ethics is also referred to as prescriptive ethics.
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All else equal, compared to perfect competition, monopolies that produce goods and services pay a.
Answer:
lower long-run wage, and long-run employment is lower.
Explanation:
which venue in nashville, tn gave many country singers the exposure needed to begin their careers?
Ryman Auditorium in Nashville, TN gave many country singers the exposure needed to begin their careers.
What is Ryman Auditorium?Nashville, Tennessee's Ryman Auditorium, a 2,362-seat live entertainment space, is situated at 116 Rep. John Lewis Way North. From 1943 through 1974, it served as the Grand Ole Opry's home base. Ryman Hospitality Properties, Inc. owns and runs it.
The leading music hall for events and one of the most renowned locations in modern music is Nashville, Tennessee's Ryman Auditorium. Compared to Grand Ole Opry, Ryman Auditorium is favoured by the majority of writers. Ryman Auditorium received positive reviews from ten sources, including Fodor's, Michelin Guide, and Michelin Guide, earning it a TripExpert Score of 87.
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A company's _____ is the large-scale action plan that encompasses the company's vision and is used to create the direction for the business.
strategy
culture
forecast
structure
A company's approach is the large-scale movement plan that encompasses the company's imaginative and prescient and is used to create the route for the business.
The required details for Strategy in given paragraph
Strategy is a general plan to attain one or extra long-time period or overall dreams below situations of uncertainty. In the feel of the "art of the general", which protected numerous subsets of capabilities inclusive of navy tactics, siege craft, logistics etc., the time period got here into use within side the sixth century C.E. in Eastern Roman terminology, and changed into translated into Western vernacular languages most effective within side the 18th century. From then till the 20th century, the word "approach" got here to denote "a complete manner to attempt to pursue political ends. Strategy is essential due to the fact the assets to be had to attain dreams are normally limited. Strategy usually entails placing dreams and priorities, figuring out movements to attain the dreams, and mobilizing assets to execute the movements.
A approach describes how the ends (dreams) can be completed through the means (assets). Strategy may be meant or can come to be a sample of pastime because the corporation adapts to its surroundings or competes. It entails sports such as strategic planning and strategic thinking.
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the buyer and the seller have agreed that the seller will remove a huge birdbath in the backyard beofre the buyer takes possession of the property. this agreeement should be
Before the buyer takes possession of the property, the seller will, as agreed upon by the buyer and seller, remove a sizable birdbath from the backyard. This understanding ought to be covered in the sales contract.
What is sales contract?An agreement between a buyer and a seller is known as a contract of sale. When a buyer agrees to purchase something from a seller at a specific price, the seller agrees to deliver it to the buyer. When the buyer pays and the seller delivers under these agreements, ownership is transferred.In circumstances where the seller is unable to deliver the purchased item right away, this contract changes somewhat. When the buyer is unable to pay the full amount right away, it also changes. As long as the seller is prepared to deliver the item being sold, both parties can still agree to transfer ownership to the buyer in these circumstances. The agreement is then subject to a resolutory condition, which states that if the purchaser defaults on the payment.
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the open-market committee of the federal reserve announced that it plans to sell more government bonds to the public. this action will likely:_____.
The open-market committee of the federal reserve announced that it plans to sell more government bonds to the public. this action will likely Federal Reserve.
A central authority is the gadget or group of people governing an prepared network, commonly a country. in the case of its huge associative definition, government commonly includes legislature, govt, and judiciary. government is a method by way of which organizational guidelines are enforced, in addition to a mechanism for determining coverage. In many nations, the government has a form of charter, a declaration of its governing ideas and philosophy. at the same time as all forms of groups have governance, the time period government is often used more especially to refer to the about 2 hundred independent national governments and subsidiary businesses.
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Which monetary policy is expansionary? sales of government securities decreases in the discount rate increases in the federal funds rate increases in the prime rate
The monetary policy is expansionary in decreases in the discount rate. Thus the correct option is B.
What is monetary policy?The Federal Reserve's operations and disclosures are part of monetary policy in the United States and are designed to promote economic growth, moderate inflation, and reasonable long-term borrowing costs.
The main instruments central banks employ to expand monetary policy are reduced bank reserves, an increase in the purchase of government assets, and a decrease in the discount rate which helps in managing economic growth.
Therefore, option B is appropriate.
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internal auditors review all aspects of operations in search of improvement, as well as review the internal control structure to determine if they are operating as expected. group of answer choices true false
Internal auditors review all aspects of operations in search of improvement, as well as review the internal control structure to determine if they are operating as expected
This statement is true.
An internal auditor (IA) is a qualified professional who works for a company to give unbiased, independent assessments of all aspects of the company's financial and operational operations, including corporate governance.
They are responsible for making sure businesses adhere to rules and laws, follow correct procedures, and operate as effectively as feasible.
An internal auditor (IA) is a qualified expert tasked with conducting unbiased assessments of the financial and operational business operations of a corporation.
They are used to make sure businesses operate effectively and adhere to proper processes. Senior management receives final reports that may also contain recommendations.
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state depreciation expense was $51,800. hoosier's federal taxable income was $152,100. calculate hoosier's indiana state tax base.
state depreciation expense was $51,800. hoosier's federal taxable income was $152,100.
Your gross income minus all accessible deductions is your taxable income. Compare that quantity to your tax bracket to estimate the amount you'll owe earlier than making use of any handy tax credits.
How does the IRS view depreciation?Depreciation is an annual income tax deduction that permits you to get better the cost or other basis of certain property over the time you use the property. It is an allowance for the wear and tear, deterioration, or obsolescence of the property.
Does depreciation have an effect on state taxes?Depreciation begins in the tax yr that an asset is placed in carrier and ends in the tax 12 months that it is retired from service or entirely depreciated. Taxpayers can typically claim depreciation deductions for kingdom profits taxes unless the state has decoupled from key federal tax provisions.
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https://brainly.com/question/25530648#SPJ4in order to require banks to hold more money as opposed to lending it, the federal reserve can —
In order to require banks to hold more money as opposed to lending it, the Federal Reserve can increase the reserve requirement.
Explain the significance of the reserve requirement.A bank's reserve requirements are the amount of money it must keep on hand in order to pay its obligations in the event of unforeseen withdrawals. Reserve requirements are a technique the central bank uses to alter the amount of money in the economy and affect interest rates.
Commercial banks, savings banks, savings and loan organizations, credit unions, U.S. branches and agencies of foreign banks, Edge corporations, and agreement corporations are all considered "depository institutions" and subject to reserve requirements. Reserve requirements are an effective tool for regulating the increase of the money supply since they limit banks' ability to extend new credit. The prudential side of reserve requirements ensures that banks have enough liquid capital to cover unforeseen expenses.
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35. a covenant not to compete is lawful if it is reasonable with regards to: a) line of business protested; b) geographic area protected; c) duration of the restriction; d) none of the above; e) all of the above.
If a commitment not to compete is reasonable in relation to the single business protested geographical area protected, it is lawful;
What does being rational entail?You possess sound judgment and common sense if you are reasonable. A fair choice is one that has been well considered and supported by logic, such as your mother's rule against ingesting crumbly things in her automobile. When you say a store's pricing are reasonable, you imply fair and not excessively exorbitant.
Why is someone reasonable?A hypothetical person is the "reasonable person," who would approach every circumstance with the proper level of precaution and then act rationally. It is a criterion designed to give jurors and judges a methodical evaluation to apply in determining whether a person's acts qualify as negligence.
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dawn (single) purchased her home on july 1, 2010 and lived in it as her principal residence. on july 1, 2020, dawn moved out of the home. she rented out the home until july 1, 2021, when she sold the home and realized a $230,000 gain (assume none of the gain was attributable to depreciation). what amount of the gain is dawn allowed to exclude from her 2021 gross income?
Amount of the gain is Dawn allowed to exclude from her 2021 gross income is $230000.
Dawn is qualified for the full deduction of $230,000 since she lived in the house for more than two years as her primary residence and owned it for more than two years throughout the five-year period ending on the sale date.
What does gross income mean?
Your salary, dividends, capital gains, company revenue, retirement pay-outs, and other sources of income are all included in your gross income. Adjustments to income can be made for things like tuition costs, interest on student loans, or contributions to retirement accounts.
Are you paid a total gross income?
Net annual income is the amount you have left over after deductions, whereas gross annual income is your income before taxes. If you're a wage earner or a business owner, this subject is crucial, especially when it comes to submitting your taxes and applying for loans.
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a 9-year bond paying coupons annually has a yield of 10% and a duration of 7.194 years. if the market yield drops by 50 basis points, what is the percentage change in the bond's price?
A 10% yield and 7.194 years are in a 9-year bond with annual coupon payments,what's the percentage change in the bond fund if the market yield declines by 50 basis points,The answer is a decline of 3.27%.
What is the bond's price change in percentage form?The duration of the bond is 7.194 years.
yield until maturity of 10%, or y
Yield to Maturity Variation is equal to Δy= ((1 + y)/(1 + y)).
Bond price movements are calculated as a percentage.
To calculate % bond price changes, use the calculations below. Duration x y/ 1 + y = 7.194 x 0.0050 / 1.10 = -3.27%, or -0.0327.
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1. Which option is an investment with compound interest?(1 point)
A. a rental property
B. a checking account
C. a mutual fund following the S&P 500
D. a savings account
2. Which of these is considered a financial market?(1 point)
A. Sotheby’s auction
B. New York Stock Exchange
C. J.P. Morgan Chase
D. Ferrari dealership
Among the given options, the investment in saving bank will include compound interest feature. Option D is correct. The financial capital market would be New York Stock exchange. Option B is correct.
What is New York Stock Exchange?One of the biggest markets in the world for securities and other exchange-traded investments is the New York Stock Exchange (NYSE).
A gathering of 24 stockbrokers took place in 1792 on what is now Wall Street in New York City, and that gathering led to the creation of the exchange.
The New York Stock and Exchange Board was formally established in 1817. In 1863, the current name was chosen.The Financial District of Lower Manhattan is place where it is located.
Therefore it is the largest capital market or financial market for raising funds.
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Answer: Which option is an investment with compound interest?
Explanation: a mutual fund following the S&P 500
Intangible assets may have ______.
- an identifiable useful life
- an indefinite useful life
- visible signs of deterioration
- a legal useful life
Intangible assets may have : An Indefinite useful life .
What is Intangible assets?
Intangible assets are non-physical assets that have monetary value to a business. Patents, copyrights, trademarks, goodwill, and software are examples of intangible assets. Intangible assets are often referred to as intellectual property because they are not physical assets such as buildings or machinery. It is also a long-term asset as it can provide value over a long period of time. Intellectual property, brand recognition and reputation, relationships and goodwill are examples of intangible assets.
Therefore the correct answer is B. An indefinite useful life.
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The phase of the business cycle at which the economy is at or near full employment is known as a(n)____ .
The section of the commercial enterprise cycle at which the financial system is at or close to complete employment is referred to as a peak.
The required details for Employment in given paragraph
Employment is a dating among two parties regulating the supply of paid labor services. Usually primarily based totally on a contract, one party, the employer, which is probably a corporation, a not-for-income organization, a co-operative, or every other entity, will pay the other, the worker, in go back for wearing out assigned paintings. Employees paintings in go back for wages, which may be paid on the premise of an hourly rate, by piecework or an annual salary, relying at the sort of paintings an worker does, the winning situations of the arena and the bargaining power among the parties. Employees in a few sectors might also additionally acquire gratuities, bonus payments or inventory options. In a few sorts of employment, personnel might also additionally acquire advantages further to payment.
Benefits might also additionally include fitness insurance, housing, incapacity insurance. Employment is normally ruled by employment laws, enterprise or prison contracts.
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bargain buys, a regional discount retailer, carefully watches and compares its operations with the operations of its closest rivals. this is an example of
Bull's-eye, a regional discount retailer, carefully watches the operation.
What is retailer?Retail, by definition, is the sale of goods or service from a business to a consumer for their own use. A retail transaction handles small quantities of goods whereas wholesale deals with the purchasing of goods on a large scale. Retail transactions are not to be confused with online transactions; goods must be sold from a single point directly to a consumer for their end users.A retailer is a person or business that you purchase goods from. Retailers typically don’t manufacture their own items. They purchase goods from a manufacturer or a wholesaler and sell these goods to consumers in small quantities.Retailing is the distribution process of a retailer obtaining goods or services and selling them to customers for use. This process is explained through the supply chain.To learn more about distribution process refer to:
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gretchen is preparing a sales presentation for the executive team. what organizational structure is she most likely to use?
Gretchen is preparing a sales presentation for the executive team. She should most likely use Matrix organizational structure.
The four forms of organizational structures are useful, multi-divisional, flat, and matrix structures. Others encompass round, group-based totally, and community structures.
Matrix organizational structure is a popular hybrid structure this is often used to streamline mission management. This version promotes collaboration between special groups and departments.
in which there may be a small wide variety of ranges within the hierarchy, the company is stated to be 'flat'. Flat establishments will generally tend to have wide spans of manipulation. In tall establishments, managers have smaller spans of manipulation (ie, fewer humans reporting at once to them).
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tom just bought a bond from united pet group. this bond is only backed by the financial reputation of the company. what type of bond did tom buy?
Debentures are bonds that are not backed by any physical collateral.
What is debenture and its characteristics?Because the issuer anticipates paying back the loans with money from the sale of the business initiative they helped fund, debentures are also known as revenue bonds. Debentures are not backed by tangible property or collateral. They have the issuer's full faith and credit as their only guarantee.An extended source of funding is provided by the debentures. They are made up of a protracted predetermined maturity phase. The debentures are typically repaid at the conclusion of their 10–20 year maturity period. The business returns the investor's principal investment amount at maturity.A debenture is a bond that is not backed by the issuing company's assets but rather simply by its good name. Investors purchase this form of bond because they think the entity, or corporation, issuing it is in good financial standing.Debentures are only supported by the issuer's creditworthiness and reputation. Debentures are a common way for both businesses and governments to raise money.There are four different kinds of debentures: first and second, convertible and non-convertible, registered and bearer, secured and unsecure, and registered and bearer.To learn more about debentures backed by assets refer to:
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On Mr. Casper’s debate team at Thunderbird High School, 20% of the members are Sophomores, 35% are Juniors and 45% are Seniors. A team member is selected randomly to give the closing argument for the team. If a sophomore gives the closing argument, the team has a probability of 0. 25 of winning the debate. If a junior gives the closing argument, the probability of winning is 0. 6. If a senior closes, the probability of winning is 0. 85
Here is a 63.25% for winning the debate given the student distribution and the chance of success of each type of student.
How are probabilities calculated?
Probability computation in mathematics has a wide range of applications. For example, probability may be used to anticipate sales growth or determine the possibility that a specific marketing strategy would be effective in luring in new customers. Mathematical formulae may also be used to determine the likelihood of something happening.
The probability formula determines the likelihood that an event will occur. The equation for calculating an event's probability uses the ratio of favorable outcomes to all other potential outcomes. The range of probabilities is always 0 to 1. The following is a representation of the general probability equation:
The ratio of favorable outcomes to all other outcomes is used to determine probability.
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When a U.S. company makes a $200,000 donation to the International Red Cross to help the victims of an earthquake in India, the transaction is recorded in the
A.current account.
B.international help account.
C.official settlements account.
D.oneminus−way donations account.
E.capital account
When a U.S. company makes a $200,000 donation to the International Red Cross to help the victims of an earthquake in India, the transaction is recorded in the current account.
What does a company's current account mean?
It is incredibly convenient to collect payments from small customers because current account holders have access to multiple bank branches where they can deposit cash or checks.
One type of deposit account used by people who deal with banks frequently is a current account, also known as a financial account. At the applicant's request, the bank creates it and makes it frequently or instantly accessible.
Therefore, Current accounts, which are linked to liquid deposits, provide a wide range of customized options to assist with financial transactions.
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the sale of licensed merchandise, items that display an event's name or logo, is beneficial for the event promoter for what type of event?
The sale of licensed merchandise, items that display an event's name or logo, is beneficial for the event promoter for whatever type of event Large, televised, multi-day events.
An event promoter is someone who organizes and promotes live events. They may be involved in all stages of the event, from pre-planning to post-event follow-up. Event promoters are often responsible for finding venues to host events, negotiating contracts, funding, and managing publicity, marketing, and promotions. They may also be involved in selecting performers, booking talent, and creating event-specific marketing materials.
In addition to planning and promoting events, event promoters must be knowledgeable in the areas of hospitality, customer service, public relations, and budgeting. Event promoters must also possess excellent communication and organizational skills in order to effectively communicate with all stakeholders, manage resources, and coordinate event logistics.
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suppose a cup of coffee is 1.5 euros in germany and $.50 in the us. if purchasing power parity holds, what is the nominal exchange rate between euros and dollars?
3 euros per dollar is the nominal exchange rate between euros and dollars.
What is nominal exchange rate?
The nominal exchange rate is reportedly:
how many units of one type of local currency must be exchanged for one type of foreign currency.
If the value of the Euro in terms of the dollar was 1.37, for example, the nominal exchange rate between the two currencies would be 1.37. We must pay $1.37 to buy one Euro.
It merely views the monetary values as numbers, which is why it is called nominal. It ignores the purchasing power of the various currencies. The "actual exchange rate," which takes buying power into account, is a different exchange rate.
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