The Payments You Make on Your Automobile Loan Are Given

question 194

Multiple Choice

The payments you make on your automobile loan are given in terms of dollars.As prices rise you notice you give up fewer goods to make your payments.

• A)The dollar amount you pay is a nominal value.The number of goods you give up is a real value.
• B)The dollar amount you pay is a real value.The number of goods you give up is a nominal value.
• C)Both the dollar amount you pay and the goods you give up are nominal values.
• D)Both the dollar amount you pay and the goods you give up are real values.

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Definitions:

Operating Cash Flow

Cash generated by a company’s core business operations.

Cash Flow

Cash Flow is the net amount of cash and cash-equivalents being transferred into and out of a business, affecting its liquidity.

Assets

Resources owned by a company, expected to deliver future economic benefits.

Capital Gains

Profit realized from the sale of assets like stocks, bonds, or real estate when the selling price exceeds the purchasing price.