A Currency Board Is a Monetary Authority That Issues Notes

question 30

Multiple Choice

A currency board is a monetary authority that issues notes and coins convertible into a key foreign currency at a _____ exchange rate.

• A) clean floating 
• B) dirty floating 
• C) fixed 
• D) target

Differentiate between the gross and net methods of recording invoices.

Understand the journal entries associated with the purchase and payment cycle, including discounts and returns.

Recognize the implications of partial payments and the handling of changes in vouchered amounts.

Apply the periodic inventory system to purchase transactions.

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Definitions:

APC (Average Propensity to Consume)

The fraction of income that households plan to spend on goods and services; it is the ratio of total consumption to total disposable income.

Disposable Income

Refers to the amount of money that households have available for spending and saving after income taxes have been accounted for.

APS (Average Propensity to Save)

The fraction of total income that is saved by the average household.

Disposable Income

The amount of money an individual or household has to spend or save after income taxes have been deducted.