In the ATM Model, If the Cost of Going to an ATM

question 37

Multiple Choice

In the ATM model, if the cost of going to an ATM increases,

• A)the number of days between visits to the ATM rises and the quantity of money demanded falls.
• B)the number of days between visits to the ATM falls and the quantity of money demanded rises.
• C)both the number of days between visits to the ATM and the quantity of money demanded rises.
• D)both the number of days between visits to the ATM and the quantity of money demanded falls.

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Definitions:

Indirect Method

A method used in the preparation of cash flow statements which adjusts net income for transactions that affect reported net income but did not involve cash.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered or used but not yet paid for.

Accounts Payable

Liabilities or money owed to suppliers or creditors for goods and services received but not yet paid for.

Indirect Method

An approach used in cash flow statements to adjust net income for the effects of non-cash transactions to compute cash flow from operating activities.