On December 1, 2015, Parsons Inc

question 77

Multiple Choice

On December 1, 2015, Parsons Inc. sold machinery to a customer for $20,000. The customer could not pay at the time of sale, but agreed to pay 9 months later, and signed a 9-month note at 9% interest. How much interest revenue was earned during the year 2016?

• A)$900
• B)$1,800
• C)$1,600
• D)$1,200

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Definitions:

Money-Supply Targets

Economic policy goals that aim to control the amount of money available in the economy to ensure stability or encourage growth.

Money-Supply Curve

A graphical representation showing the relationship between the quantity of money in an economy and the price level or interest rate.

Aggregate Demand Curve

A curve that represents the total demand for all goods and services within an economy at various price levels, illustrating the inverse relationship between price level and demand.

Federal Reserve

The central banking system of the United States, responsible for conducting national monetary policy, supervising and regulating banks, maintaining financial stability, and providing financial services.