The View That Velocity Is Constant in the Short Run

question 92

Multiple Choice

The view that velocity is constant in the short run transforms the equation of exchange into the quantity theory of money. According to the quantity theory of money,when the money supply doubles

• A)velocity falls by 50 percent.
• B)velocity doubles.
• C)nominal incomes falls by 50 percent.
• D)nominal income doubles.

Understand the function and recording of petty cash transactions including the establishment and replenishment of petty cash funds.

Identify internal control procedures for managing cash receipts and disbursements.

Analyze the role of cash management in business operations, including bank reconciliations and the handling of cash overages and shortages.

Distinguish between the various types of adjustments needed for a proper bank reconciliation.

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Definitions:

Marginal Products

The additional output that results from using one more unit of a particular input, holding all other inputs constant.

Sales Clerks

Employees in retail stores responsible for assisting customers, conducting transactions, and maintaining the arrangement of goods.

Customers Served

A measure of how many clients or customers a business, organization, or service has provided for in a given period.

Marginal Product

The additional output that can be produced by adding one more unit of a specific input, keeping all other inputs constant.