Which of the Following Statements About Andy Is True If

question 99

Multiple Choice

Which of the following statements about Andy is true if the inflation rate is increasing every year by 1 percent and there is no growth in his salary?

• A) Andy can afford to buy more luxury items as prices go down.
• B) Andy's purchasing power will decrease.
• C) Andy's employment opportunities will increase.
• D) The lack of growth in Andy's salary will increase the average inflation rate .
• E) Andy's cost of borrowing will be reduced.

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Definitions:

Entitled To Enforce

A legal phrase indicating that a person or entity has the right to enforce a contract or legal instrument.

Promissory Note

A promissory note is a financial instrument in which one party (the issuer) promises in writing to pay a determinable sum of money to the other (the payee), either at a fixed or determinable future time or on demand of the payee, under specific terms.

Proper Presentment

The formal process of presenting a document, such as a check or draft, to the appropriate party for payment or acceptance.

Certify A Check

Is the process by which a bank confirms that there are sufficient funds in the check writer's account to cover the amount written on the check, and so guarantees its payment.