It Is Assumed That the Activities of Ford Motor Company

question 92

Multiple Choice

It is assumed that the activities of Ford Motor Company can be distinguished from those of General Motors because of the

• A)going concern assumption.
• B)economic entity assumption.
• C)monetary unit assumption.
• D)periodicity assumption.

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Definitions:

Saving Deposits

Accounts held at financial institutions that pay interest but typically have restrictions on withdrawals.

M1

A category of the money supply that includes all physical currency and coin, demand deposits, traveler's checks, and other checkable deposits.

Open-Market Purchase

The buying of securities and other financial assets by a central bank from the market to increase the money supply and lower interest rates.

Money Supply

The entirety of monetary resources available in an economy at a specific time, including cash, coins, and balances in checking and savings accounts.