Consumption

question 96

Multiple Choice

Consumption:

• A) is a major component of aggregate demand.
• B) is negatively related to the national price level.
• C) measures people's expenditures on real goods and services.
• D) All of these are true.

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Definitions:

Reconcile

The process of ensuring two sets of records (usually the balances of two accounts) are in agreement.

Checking Accounts

Banking accounts that allow for easy deposit and withdrawal of funds for daily transactions.

Petty Cash

A small amount of cash on hand used for covering minor or incidental expenses within a business.

Bank Reconciliation

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement.