If the Money GDP Is $600 Billion And, on the Average

question 153

Multiple Choice

If the money GDP is $600 billion and, on the average, each dollar is spent three times per year, then the amount of money demanded for transactions purposes:

• A)will be $1800 billion.
• B)will be $600 billion.
• C)will be $200 billion.
• D)cannot be determined from the information given.

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Definitions:

Accrued Interest

Accrued interest is the interest that has accumulated on a loan or bond but has not yet been paid. It is recognized in the accounting records before the payment is made.

Interest on Loan

The cost incurred by borrowing money, calculated as a percentage of the principal loan amount.

Asset Account

An Asset Account is a financial record that tracks the value of a company’s tangible and intangible properties, like buildings, cash, or intellectual property.

Revenue Account

An account that tracks the income generated by a business from its normal operations.