Answer:
D. Credit card companies usually charge higher interest rates for cash advances than for purchases.
Explanation:
A credit card can be defined as a small rectangular-shaped plastic card issued by a financial institution to its customers, which typically allows them to purchase goods and services on credit based on the agreement that the amount would be paid later with an agreed upon interest rate.
Generally, small businesses or companies who avail their customers the opportunity to pay using a credit card will increase the number of customers that would patronize them because they are typically buying the goods and services on credit.
Also, when a credit card holder is requesting for an advance on cash from its merchant or financial institution, they are usually charged more interest rates compared to when using the card to make a purchase.
Hence, the statement which is true about credit card is that, credit card companies usually charge higher interest rates for cash advances than for purchases.
Answer:
1, supply, depreciate
Explanation:
If Net Capital Outflow increases, the supply of dollars in the Foreign Currency Exchange Market will increase, causing the real exchange rate to depreciate
Answer:
The correct answer is option A.
Explanation:
According to the classical theory, the quantity of money is directly related to price level. So, any shortage or surplus in the money market can be corrected by increasing or decreasing price level.
According to the liquidity preference theory, however, money is demanded for transactionary, precautionary and speculative motive. So, only price level does not affects the quantity of money. Interest rates also effect the demand for money.
So, option A is the correct answer.
Answer:
The right answer is C; There is an inverse relationship between price and quantity demanded
Explanation:
The law of demand indicates that there is an inverse relationship between the price and the quantity demanded of a good.
This means that if the price of a good increases, then demand decreases and if the price decreases, demand tends to rise at the same time.
