TUGAS TUTORIAL 1

ADBI4201 BAHASA INGGRIS NIAGA

Nama : Zidna Ilma Alfiani

NIM : 051805525
Program Studi : Akutansi
UPBJJ : Purwokerto

FAKULTAS EKONOMI DAN BISNIS

2024
PETUNJUK PENGERJAAN:
Untuk menjawab tugas 1,anda bisa membaca dan mempelajari BMP pada modul 1, 2 dan 3
serta referensi lainnya yang mendukung materi ini. Untuk tugas 1 ini berdasarkan pertemuan
tuton minggu ke 1, 2 dan 3. Tugas 1 dikumpulkan dalam waktu 2 minggu.
SOAL:
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. Auctions are commonly used to sell unique and high-value items. However, auction
prices can be influenced by emotions, competition, and market trends. Do you think
auctions always reflect the true value of an item? Do you agree that Auctions are the
Best Way to determine the True Value of Rare Items? Support your argument with
examples.
2. Central banks play a key role in stabilizing a country's currency by adjusting interest
rates and implementing monetary policies. In your opinion, what are the most
effective ways for a central bank to control exchange rate fluctuations, and how do
these policies impact businesses and consumers?
3. Some countries maintain a restricted currency, while others allow their currency to
fluctuate based on market forces. Which system do you think is better for a country's
economy? Consider the advantages and disadvantages of both approaches in your
discussion.

ANSWER :
1.
In my opinion, auctions don't always reflect the true value of an item, and they aren't
necessarily the best way to determine the value of rare items. While auctions can provide a
market-driven price, various factors like emotional bidding, competition, and market trends
can influence the final price, sometimes leading to prices that don't accurately reflect intrinsic
worth.
Examples :
 Art Auctions
While art auctions can set record prices, these are often driven by speculation and
market hype, potentially leading to prices that don't reflect the artist's actual talent or
the market's overall interest in their work.
 Rare Books
The demand for a specific rare book could be driven by collector's preferences or a
particular trend, leading to a higher price than what a purely objective valuation
would suggest.
  Properties
Auctioned properties can sell below the guide price if there isn't enough interest or if
the reserve price is set too high.

2.
Central banks use monetary policy tools like adjusting interest rates and implementing open
market operations to manage currency exchange rates and maintain economic stability. These
actions impact businesses and consumers by influencing inflation, lending costs, and
international trade. By changing interest rates, central banks make currencies more or less
attractive to investors. Market participants trade with each other, not with central banks.
Central banks monitor exchange rates and move interest rates to achieve a peg.
Effective Exchange Rate Control :
 Interest Rate Adjustments
Central banks can raise or lower interest rates to influence the value of their
currency. Higher interest rates tend to attract foreign investment, increasing demand
for the currency and potentially strengthening its exchange rate. Conversely, lower
interest rates can lead to a weaker currency.
 Open Market Operations
Central banks can buy or sell government securities in the open market to control the
money supply and influence interest rates. Buying securities injects money into the
system, potentially lowering interest rates and impacting the currency.
 Foreign Exchange Interventions
Central banks can directly intervene in the foreign exchange market by buying or
selling their currency to stabilize its value. This can involve buying their own
currency to increase demand and support its value, or selling to increase supply and
potentially lower its value.
 Monetary Policy Communication
Central banks can communicate their intentions and outlook to the public and
financial markets, influencing expectations about future exchange rates and monetary
policy.

Impact on Businesses and Consumers :

 Businesses
Exchange rate fluctuations can significantly impact businesses involved in
international trade or with foreign competitors. A stronger currency can make exports
more expensive and imports cheaper, while a weaker currency has the opposite
effect.
  Consumers
Exchange rate fluctuations can affect the prices of imported goods and services,
impacting purchasing power and the cost of living. A weaker currency can make
imported goods more expensive, while a stronger currency can make them cheaper.
 Inflation
Monetary policy affects the overall level of prices in the economy. If central banks
use monetary policy to control inflation, it can also impact exchange rates.
 Lending Costs
Interest rate adjustments by central banks influence the cost of borrowing for
businesses and individuals, impacting investment decisions and consumer spending.
 Investment
Exchange rate stability and monetary policy can create a more predictable
environment for international investment, encouraging both foreign and domestic
investment.

3.
In my opinion, both fixed and floating exchange rates have their own advantages and
disadvantages for a country’s economy, so there is no universally “better” one. Floating
exchange rates offer flexibility and allow the currency to adjust to economic conditions,
potentially boosting exports. However, they can also cause volatility and uncertainty, which
impacts trade and investment. On the other hand, fixed exchange rates offer stability and
certainty for trade and investment, but can limit a country’s ability to adjust to economic
shocks and may require significant foreign exchange reserves.
The implementation of a limited currency (such as cryptocurrency) has advantages and
disadvantages. The advantages include ease of transaction, potential resistance to inflation,
and transaction security. The disadvantages include high price fluctuations, unclear
regulations, and the risk of disruptive technology.
Advantages a limited currency :
 Easier and Faster Transactions
Cryptocurrency allows transactions without intermediaries, making it faster and
cheaper than traditional payment systems.
 Potential Resistance to Inflation
Some cryptocurrencies, such as Bitcoin, have a limited supply, which can make their
value more stable and resistant to inflation.
 Transaction Security
The blockchain technology underlying many cryptocurrencies increases transaction
security and reduces the risk of fraud.
 Privacy and Decentralization
 Some cryptocurrencies offer a higher level of privacy and decentralization, which can
provide freedom for users.
Disadvantages of limited currency :
 High Price Fluctuations
The price of cryptocurrencies is highly volatile and can change drastically in a short
period of time.
 Unclear Regulation
Regulations on cryptocurrencies are still developing and unclear in many countries,
leading to violations of the law.
 Technology Risks
Cryptocurrency systems are vulnerable to cyberattacks, programming errors, or
infrastructure issues that can lead to the loss of funds.
 Limitations of Use
Cryptocurrency is not yet widely used as a means of everyday payment in many
places.
 Potential for Illegal Activity
The decentralized and anonymous nature of some cryptocurrencies can be exploited
for illegal activities such as money laundering.

While the fluctuation system is a system that determines the value of petty cash based on
operational needs. This means that the petty cash balance is not fixed but fluctuates according
to the number of transactions in petty cash. The balance amount will continue to change in
each period along with the adjustment of operational needs.
Advantages of the Fluctuating Fund System :
 Expenses will be recorded directly so that the balance can be known immediately at
any time
 If in the middle of the period there is suddenly a shortage of funds, then the funds can
be immediately added without waiting for the end of the period
 Accountants can be facilitated because the funds will be immediately recorded when a
small transaction occurs.

Disadvantages of the Fluctuating Fund System :

 For fund processing, it is still less efficient because it has the potential for waste
 With funds that can be added directly, it can make cashiers less careful in managing
funds