Question

TRUE OR FALSE ? WHY ? Plesae help me

1. The goods that the enterprise wants or intends to add to its capital stock are inventories.

2. In a simple economy, the gross national product is the same as the gross domestic product and the national income.

3. The central bank cannot go bankrupt because it is always able to repay depositors' withdrawals by printing new notes at a faster rate.

4. Inflation is a phenomenon of money, so just reducing the money supply will reduce inflation.

Answer 1

1. True

2. False

3. True

4. True

Step-by-step explanation:

1. in accounting the stock is treated as inventories

2. because the GNP considers the output of a country's citizens regardless of where that economic activity occurred. GNP expresses the total value of all goods (products and services) produced by the residents of a particular country, regardless of national borders, thus including their foreign assets. while GDP considers the activity within a national economy regardless of the residency of the producers.

3. Financing for central banks is completely different to that of commercial banks and private corporations because their commitments – banknotes and commercial banks’ overnight deposits held at central banks are the only authorized forms of payment in their jurisdiction. Central banks have a monopoly on creating money,

4. inflation is a monetary phenomenon means to control the supply of money