Which of the Following Is Consistent with the Equation of Exchange

question 97

Multiple Choice

Which of the following is consistent with the equation of exchange?

• A) Total spending must equal the total sales revenues of business firms.
• B) The money supply multiplied by velocity must equal GDP.
• C) The money supply multiplied by velocity must equal the price level times Real GDP.
• D) a and b
• E) a,b and c

Comprehend the responsibilities and performance evaluation metrics of profit center managers.

Learn about the role of responsibility accounting in management and its impact on different levels of an organization.

Identify direct and indirect expenses in a department store setting.

Understand the distinction between cost centers, profit centers, and investment centers in an organizational context.

---

Definitions:

FOB

An abbreviation of free on board.

FAS

An abbreviation for the expression free alongside ship.

Immediate Payment

A demand for payment to be made at once, typically in a transaction, without any delay or installment arrangements.

UCC 9-307

A provision under the Uniform Commercial Code that deals with a buyer's rights in goods purchased from a seller who does not have clear title, subject to certain conditions.