The most important determinant of consumption and saving is the

The economic definition of money is:_________

SVEN [57.7K]

Answer:

The correct answer is option A.

Explanation:

Money can be defined as an object that is widely used as a medium of exchange in economic transactions. The primary function of money is to act as a medium of exchange for goods and services.

Other than that money also performs a number of secondary functions. It acts as a store of value, unit of account and standard of deferred payments.

Money can be of different types such as commodity money, bank money, and fiat money.

5 0

3 years ago

People need to have _____ in the economy to spend money.

katen-ka-za [31]

People need to have [Purchasing Power] in the economy to be able so spend money. Purchasing power means having the financial ability to spend money in buying goods and services.

5 0

3 years ago

Read 2 more answers

You want to buy an Audi A8 7 years from now. You have priced these cars and found that they currently sell for $83,800. You beli

lana [24]

Answer:

We to invest $ 17,213 per year to buy the car in seven years from now

Explanation:

First, we solve for the future value of the car:

$Principal \: (1+ r)^{time} = Amount$

Principal 83,800.00

time 7.00

rate 0.10000

$83800 \: (1+ 0.1)^{7} = Amount$

Amount 163,302.49

Then, for the PTM to achieve tham amount in 7 years:

$FV \div \frac{(1+r)^{time} -1}{rate} = C\\$

FV 163,302

time 7

rate 0.1

$163302.49298 \div \frac{(1+0.1)^{7} -1 }{0.1} = C\\$

C $ 17,212.981

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3 years ago

A merchandiser returned inventory worth $1,400 that was purchased on account. Under the periodic inventory system, the joumal

cestrela7 [59]

Answer:

a debit to Accounts Payable for $1,400 and a $1,400 credit to Purchase Returns allowances

Explanation:

Periodic inventory system is one that updates information on inventory on a periodic basis. This is opposite of perpetual inventory system that requires update of inventory system at all times.

In the scenario the merchandiser bought the goods on account. That means he did not pay cash but rather bought on credit.

On purchasing the items accounts payable will be credited thereby increasing the account balance.

Since the items are being returned a debit will be applied to accounts payable resulting in a decrease in the account balance.

A credit will now be posted to purchase returns allowances to show that products have been returned by a buyer

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3 years ago

Listed below are several transactions. For each transaction, indicate whether the ca financing, or noncash activity. Also, indic

mariarad [96]

Answer:

1. Operating and Cash outflow: Payment of employee salaries.

2. Investing and Cash inflow: Sale of land for cash. Investing

3. Operating and Cash outflow: Purchase of rent in advance.

4. Operating and Cash inflow: Collection of an account receivable.

5. Financing and Cash inflow: Issuance of common stock.

6. Operating and Cash outflow: Purchase of inventory

7. Investing and Cash inflow: Collection of notes receivable.

8. Operating and Cash outflow: Payment of income taxes.

9. Noncash activity, so no effect: Sale of equipment for a note receivable.

10. Financing and Cash inflow: Issuance of bonds.

11. Investing and Cash outflow: Loan to another firm.

12. Financing and Cash outflow: Payment of a long-term note payable.

13. Financing and Cash outflow: Purchase of treasury stock.

14. Operating and Cash outflow: Payment of an account payable.

15. Investing and Cash inflow: Sale of equipment for cash.

Explanation:

A statement of cash flow is a financial statement that gives the aggregate cash inflow and cash outflow in an organization during an accounting period. The three categories of statement of cash flows are investing activities, financing activities, and operating activities.

1. Investing activities are essentially the cash activities with respect to non-current assets such as sale of equipment for cash.

2. Financing activities refers to cash activities with respect to owners’ equity and non-current liabilities such as purchase of treasury stock.

3. Operating activities are mainly the cash activities with respect to net income such as payment of employee salaries.

8 0

3 years ago