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TT1 Bahasa Inggris Niaga Adbi4201

1. The document discusses two topics related to economics and finance. The first is about whether auctions are an effective method for selling products on Instagram. The second topic is about what would happen if a country did not have a central bank. 2. The response chooses the second topic and explains that a central bank is responsible for a country's monetary policy and currency. It controls the production and distribution of money and credit. 3. Without a central bank, a country's currency value and entire financial system would become unstable and inflation would not be controlled, negatively impacting the economy.

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56 views1 page

TT1 Bahasa Inggris Niaga Adbi4201

1. The document discusses two topics related to economics and finance. The first is about whether auctions are an effective method for selling products on Instagram. The second topic is about what would happen if a country did not have a central bank. 2. The response chooses the second topic and explains that a central bank is responsible for a country's monetary policy and currency. It controls the production and distribution of money and credit. 3. Without a central bank, a country's currency value and entire financial system would become unstable and inflation would not be controlled, negatively impacting the economy.

Uploaded by

lutfi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Mata Kuliah : Bahasa Inggris Niaga (ADBI4201)

Please choose one of the topics below. Then, write an essay consisting of 3 paragraph.
Elaborate your own opinion with the references related to the topic that you choose.

1. Nowadays, there are many sellers in instagram use auction to sell their product. Do
you think that auction is the effective method to sell the product? Explain your
reason!
2. The primary goal of central banks is to provide their countries' currencies with price
stability by controlling inflation. What will happen if a country does not have Central
bank?

I chose topic number two, and here's my take on the topic.


Money is one of the official medium of exchange that is developing in the world. Money is officially
circulated through banks with due regard to the various financial services needs of the community.
From transferring money between accounts in real time, paying and receiving salaries, paying for
goods and services, to making financial investments, you can do it all with your bank.
A country usually has institutions responsible for monetary policy within its territory. This institution
is the central bank. A central bank is a financial institution that has the privilege of controlling the
production and distribution of money and credit for a country or a group of countries, and also has
full power to control monetary activity in a country.
If a country does not have a central bank, the stability of the value of the currency, the stability of
the banking sector and the entire financial system weaken and become unstable. The central bank
keeps inflation under control and, by regulating the balance of money and goods, is always at the
lowest possible value or in the optimal position for the economy (low/zero inflation). If there is too
much money in circulation, the central bank corrects it with its instruments and powers.
Do you agree that a floating exchange rate adds uncertainty to international trade? Explain your
reason!
Yes, I agree that floating exchange rates add uncertainty to international trade.
Its free movement allows the exchange rate to adjust and correct imbalances such as the current
account deficit. In floating exchange rates, the value of currencies constantly fluctuates based on the
fundamentals of supply and demand. Even somewhat speculative behavior affects volatility.
A floating exchange rate system means a long-term change in currency prices that reflects the
relative strength of the economy and the difference in interest rates between countries. Too low or
too high a currency can have a negative impact on a country's economy, affecting trade and debt
repayment of that country.
The floating exchange rate system makes the currency more unstable. Fluctuations lead to instability
in the economy and uncertainty in the financial decisions of entrepreneurs. For example, it is difficult
for companies to make financial decisions because the exchange rate moves unexpectedly. Market
mechanisms do not always lead to ideal economic conditions, since speculative attacks can lead to
economic disaster. Such an attack can cause the economy to experience a financial crisis.

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