An Assistant Manager at a Restaurant Gets a $100 a Month

question 29

Multiple Choice

An assistant manager at a restaurant gets a $100 a month raise.He figures that with his new monthly salary he cannot buy as many goods and services as he could buy last year.

• A)His real and nominal salary have risen.
• B)His real and nominal salary have fallen.
• C)His real salary has risen and his nominal salary has fallen.
• D)His real salary has fallen and his nominal salary has risen.

Understand how nonsufficient funds checks are treated and recorded by banks.

Recognize how outstanding checks and bank charges are treated in bank reconciliations.

Identify and describe various electronic banking conveniences.

Distinguish between different types of accounts and their reporting on financial statements.

---

Definitions:

Price Ceiling

A legally established maximum price that can be charged for a good or service, often set below the equilibrium price to keep essential goods affordable.

Surplus

An excess of something, especially a quantity of a commodity or financial instrument that exceeds what is needed or used.

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity supplied, leading to market balance.

Equilibrium Quantity

The amount of goods or services that is supplied and demanded at the equilibrium price.