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3 years ago

Which of the following statements are consistent with how inflation affects the three functions of money? Check all that apply.

Business

1 answer:

Anna [14]3 years ago

6 0

Answer:

B,C, D, E

Explanation:

B. Rising prices (inflation) makes comparism of financial data less reliable. This is one of the major drawbacks of historic financial information because such information does not take into account the impact of inflation.

C. Money loses its attributes as a store of value in inflationary period. This is because the nominal value of money increase through an increase in Consumer Price Index (CPI) while the real value of money drops as the unit amount of purchasing power decrease from increase in prices.

D. The demand for money increases in inflationary period as more money chases few goods. This reduces purchasing power of individuals and leads to rise in prices.

E. This has the potential of reducing purchasing power as money loses its value in periods of inflation.

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You can lead a horse to water but you can't make it drink. How might this adage be relevant to expansionary monetary policy?

elena55 [62]

Answer:

The purpose of expansionary monetary policy is to increase the supply of money in the economy which would theoretically make it cheaper for people to borrow money to consume or for companies to borrow money for investment.

The whole thing therefore relies on people and companies borrowing. Sometimes however, monetary policy may work in increasing the amount of money in the economy but then a situation arises where people do not want to borrow and companies do not want to borrow for investment either because they do not think the economy is strong enough for expansion or for whatever other reason. .

They are being given cheaper access to money (led to the water) but they refuse to borrow and invest (can't be made to drink).

4 0

2 years ago

At the end of the first month of operations, the Lamar Company's accountant prepared financial statements that showed the follow

Sedaia [141]

Answer:

Assets = $87,350

Liabilities = $30,450

Stockholders' Equity = $56,900

Net Income = $7,900

Explanation:

The correct amounts of assets, liabilities and stockholders' equity at month-end and net income for the month can be determined as follows:

Assets = Recorded asset value - Depreciation + Unbilled service revenue = $90,000 - $4,500 + $1,850 = $87,350

Liabilities = Recorded liabilities + Unpaid wages = 30,000 + 450 = $30,450

Stockholders' Equity = Recorded Stockholders' Equity - Depreciation + Unbilled service revenue - Unpaid wages = $60,000 - $4,500 + $1,850 - $450 = $56,900

Net Income = Recorded net income - Depreciation + Unbilled service revenue - Unpaid wages = 11,000 - $4,500 + $1,850 - $450 = $7,900

Note that from the above calculations, we can obtain:

Liabilities + Stockholders' Equity = $30,450 + $56,900 = $87,350

This therefore confirms the accounting equation that:

Assets = Liabilities + Stockholders' Equity = $87,350

8 0

3 years ago

He contract that contains provisions for surface leases related to a property is the _____.

vfiekz [6]

The contract that contains provisions for surface leases related to a property is the Farm and Ranch contract.

A void contract is a contract that fails a validity test and is therefore not a contract. A void contract is a contract that initially appears valid but may be terminated by a party deemed to have interfered in some way.

After a reasonable period of time, the contract is considered accepted and can no longer be objected to. Other examples include real estate contracts, attorney contracts, etc. If a contract is concluded without the free consent of the parties, it will be considered a void contract.

A voidable contract is a formal agreement between two parties that can be made unenforceable for a variety of legal reasons, including Errors, Misrepresentations, or Fraud. Excessive influence or coercion.

Learn more about contracts here brainly.com/question/984979

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8 0

2 years ago

A written representation from a client’s management that, among other matters, acknowledges responsibility for the fair presenta

7nadin3 [17]

Answer:

The answer is Chief Executive Officer and and the Chief Financial Officer

Explanation:

As part of the requirements for audit process, the external auditor will obtain from the management a written representation for the financial statements being presented to the external auditor. The management is responsible for the preparation of Financial statement and the external auditor expresses their opinions on it.

To show accountability, The Chief Executive Officer and the Chief Financial Officer both sign on it.

6 0

2 years ago

Online Book Merchants offers premium customers 1 free book with every purchase of 5 or more books and offers 2 free books with e

EastWind [94]

Answer:

A statement that assigns freeBooks the appropriate value based on the values of the boolean variable isPremiumCustomer and the int variable nbooksPurchased.

if(nbooksPurchased > 4){

if(isPremiumCustomer){

freeBooks = 1;

if(nbooksPurchased > 7){

freeBooks = 2;

}

}else{

freeBooks = 0;

if(nbooksPurchased > 6){

freeBooks = 1;

}

if(nbooksPurchased > 11){

freeBooks = 2;

}

}else{freeBooks = 0;}

Explanation:

5 0

2 years ago