The Introduction of ATMs

question 275

Multiple Choice

The introduction of ATMs:

• A) increased the demand for cash because it made cash easier to get.
• B) decreased the demand for cash because it reduced the cost of moving from other assets into cash.
• C) did not change the demand for cash because it is proportional to the price level.
• D) did not change the demand for cash, as ATMs do not affect public spending habits.

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Definitions:

Expensed

The act of charging costs to expense accounts, recognizing them in the income statement in the period they were incurred.

Operation

In a business context, operation refers to the day-to-day activities necessary for running a company, which can include production, distribution, and the provision of services.

CCA Deductions

Refers to Capital Cost Allowance deductions in taxation, allowing businesses to claim depreciation on tangible capital assets.

CCA Tax Shield

Refers to the decrease in taxable income for businesses in Canada due to Capital Cost Allowance, which allows for the depreciation of tangible property to be deducted from taxable income.