In 2011,the Bank of Canada Worried About

question 140

Multiple Choice

In 2011,the Bank of Canada worried about:

• A) the threat of stagflation,the simultaneous existence of high inflation and high unemployment.
• B) hyperinflation,and it used strong disinflationary policies to bring the rise in prices under control.
• C) a healthy,booming economy,and it used fine-tuning methods to keep the growing economy on track.
• D) a deep recession with falling prices,and it used stabilization policies to take the economy out of the slump.

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Definitions:

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equity) is represented as a proportion of the total account.

Net Sales

The amount of sales revenue remaining after deducting sales returns, allowances, and discounts.

Comprehensive Income

The change in equity of a company during a period from transactions and other events, excluding any owner contributions and distributions.

Unrealized Loss

A financial loss that has occurred on paper due to the current market value being lower than the asset's purchase price, but has not yet been realized through sale.