A Change in Financial Technology That Reduces the Need to Hold

question 45

Multiple Choice

A change in financial technology that reduces the need to hold large cash balances ________ the demand for money and ________ the equilibrium nominal interest rate.

• A) increases; raises
• B) increases; lowers
• C) decreases; raises
• D) decreases; lowers
• E) decreases; does not change

Identify the characteristics of a strong decreasing linear relationship as indicated by the Spearman rank-correlation coefficient.

Apply Spearman rank correlation coefficient in practical scenarios involving ordinal data.

Utilize Spearman rank correlation for hypothesis testing and understanding its distribution, especially in larger samples.

Analyze the relationship between two variables using Spearman rank correlation when normality conditions are not met.

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Definitions:

Ending Inventory

Ending Inventory is the total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting goods sold.

Cash Receipts

The collection of money, including cash, checks, and credit card payments, by a business during a given period.

Sales Budget

A financial plan that estimates future sales volumes and revenues for a specific period.

Direct Materials

Direct materials are raw materials that are directly traceable to the manufacturing of a specific product and are an essential component of its production.