As Defined by Economists, Interest Is

question 165

Multiple Choice

As defined by economists, interest is

• A)only the amount earned by productive capital as a resource
• B)only the amount earned by land as a resource
• C)only the amount earned by lending money
• D)both the amount earned by productive capital as a resource and the amount earned by lending money
• E)both the amount earned by land as a resource and the amount earned by lending money

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Definitions:

Total Assets

The sum of all assets owned by a company, displayed on the balance sheet, including current and non-current assets.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Total Current Assets

The sum of all assets that a company expects to convert into cash, sell, or consume within one year or within the normal operating cycle of the business.

Current Liabilities

Obligations a company is expected to pay within a year, including accounts payable, short-term loans, and other short-term debts.