A(n) _____ Item Is Expected to Generate Cash Over Periods

question 68

Multiple Choice

A(n) _____ item is expected to generate cash over periods longer than a year or use cash over periods longer than a year.

• A)illiquid
• B)appropriated
• C)liquid
• D)current
• E)noncurrent

---

Definitions:

Economic Policy

A set of strategies chosen by a government to influence its economy, including fiscal policy (use of government spending and taxation) and monetary policy (controlling the nation's money supply and interest rates).

Time Lags

The delays between the initiation and the effect of an economic policy or other financial actions, impacting their effectiveness.

Passive Approach

An investment strategy that minimizes buying and selling actions, favoring long-term holding and typically indexed investments.

Policy Lags

The delay between the time a policy is enacted and the time it has an impact on the economy.