Credit Cards Are I. a Generally Accepted Form of Payment and Therefore Part

question 122

Multiple Choice

Credit cards are
I. a generally accepted form of payment and therefore part of M1.
Ii. are included in M1 because you write a check to pay your monthly bill.
iii. a means of borrowing money.

• A)ii only
• B)i and ii
• C)i only
• D)iii only
• E)i and iii

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Definitions:

Sales Estimate

A projected figure indicating the amount of sales a company expects to achieve in a certain period.

Net Present Value

A method used to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows.

Operating Cash Flows

The cash generated from the normal operations of a business, such as revenue from sales after operating expenses are deducted.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be consumed or sold within a year.