If Arnold Has a Positive Rate of Time Preference, He

question 114

Multiple Choice

If Arnold has a positive rate of time preference, he desires to

• A)save in case of inflation
• B)consume now rather than later
• C)invest in stocks and bonds
• D)invest in education
• E)plan for retirement

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Definitions:

Footing

An accounting term referring to the final total that appears at the bottom of a column of numbers or the process of adding up figures in a column.

Cross-footing

A method used in accounting to check the arithmetic accuracy of accounts by comparing the sums of the totals in the opposite directions.

Special Journals

Special journals are accounting tools used to record specific types of transactions in a more efficient manner, such as sales, purchases, cash receipts, and disbursements.

Monthly

Pertaining to or occurring once every month.