The Statement Concerning Bank Issued Credit Card Fees Merchant Fees)that

question 34

Multiple Choice

The statement concerning bank issued credit card fees merchant fees) that is untrue is:

• A)They are calculated by the bank once a month
• B)They are calculated as a flat charge regardless of sales
• C)They are recorded by the firm as a debit to the merchant fees expense account and a credit to bank
• D)Credit card fees are subject to GST

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Definitions:

Interest Rate

The percentage at which interest is charged or paid for the use of money over a period.

Quantity Theory of Money

An economic theory that suggests the general price level of goods and services is directly proportional to the amount of money in circulation.

Velocity of Money

How quickly money moves from one exchange to another and the rate of usage of a currency unit within a designated time period.

Money Supply

The full measure of financial assets available within an economy at a specific juncture.