If a Certain Household Earns and Spends $24,000 Per Year $1 / 6 .$

question 69

Multiple Choice

If a certain household earns and spends $24,000 per year and, on the average, holds a money balance of $6,000, then the velocity of money for this household is

• A) 6.
• B) \(1 / 6 .\)
• C) 4.
• D) \(1 / 4\)

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Definitions:

Subsidiaries

Companies that are controlled by another company, known as the parent company, through ownership of more than half of the voting stock or through other mechanisms of control.

Net Assets

The total assets of a company minus its total liabilities, representing the owners' equity in the company.

Business Combination

Represents a transaction or event where an acquirer obtains control of one or more businesses.

Journal Entry

A record in bookkeeping that logs the debit and credit aspects of a financial transaction.