the average money balance during the pay period. Concept Introduction: The velocity of money is affected by many financial innovations of exchanging money. The frequency of wages is also an important factor that determines the velocity of money. Since payment practices change slowly over time, their effects on velocity can be anticipated. The more often workers get paid, keeping things constant, the lower their average money balances, so the more active the money supply and the greater its velocity. Thus, to increase the average money balance, the wages should not be paid very frequently but at long regular intervals which enables the worker to plan their spending.

Question

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Answer 1

Question

Chapter 15, Problem 1P

Sub-part

A

To determine

the average money balance during the pay period.

Concept Introduction:

The velocity of money is affected by many financial innovations of exchanging money. The frequency of wages is also an important factor that determines the velocity of money. Since payment practices change slowly over time, their effects on velocity can be anticipated. The more often workers get paid, keeping things constant, the lower their average money balances, so the more active the money supply and the greater its velocity. Thus, to increase the average money balance, the wages should not be paid very frequently but at long regular intervals which enables the worker to plan their spending.

Sub-part

A

Expert Solution

Explanation of Solution

Since I spend my money at a constant rate during the month, I use the same amount everyday which leaves my average money balance to be $1,00030=$33.33 during the pay period.

Sub-Part

B

To determine

the average monthly balance in each of the circumstances.

Concept Introduction:

The velocity of money is affected by many financial innovations of exchanging money. The frequency of wages is also an important factor that determines the velocity of money. Since payment practices change slowly over time, their effects on velocity can be anticipated. The more often workers get paid, keeping things constant, the lower their average money balances, so the more active the money supply and the greater its velocity. Thus, to increase the average money balance, the wages should not be paid very frequently but at long regular intervals which enables the worker to plan their spending.

Sub-Part

B

Expert Solution

Explanation of Solution

I spend at a constant rate, so getting $500 twice monthly instead of $1,000 once, would lower my average money balance to $5,0030=$16.67 .
If I am uncertain about my total spendings, I would keep hold some money and thus, my average money balance would increase as it would be more than zero.
Spending more in the beginning of the month would make reduce the amount of money with me, thus, this reduce the average money balance.
If the income increases from $1,000, it will increase the average money balance.

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2.The Secretary of the Treasury was authorized by Congress to mint and sell a stated number of commemorative coins to raise funds to restore and renovate the Statue of Liberty. The U.S. Mint mailed advertising materials to persons, including Mary and Anthony Mesaros, that described the various types of coins that were to be issued. Payment could be made by check, credit card, or money order. Directly above the space provided on the order form for the customer’s signature was the following: “YES. Please accept my order for the U.S. Liberty Coins I have indicated. “ Mesaros forwarded to the Mint a credit card order for $1,675 for certain coins. Cash orders were processed before credit card orders. The 500,000 authorized coins were distributed before the Mesaros’ credit card order was able to be processed. The Mint notified the Mesaros that their order would not be filled. The coins increased in value 200% within the first few months after distribution. The Mesaros sued the U.S.…

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Terminal Activity PROBLEM SET Study and solve the given problems below. Show your complete solutions and label your answer. Write your ANSWER on your sheet. 1. Pamela makes a monthly salary of 27,900 pesos. She also receives an additional 9.5% commission rate bonus for any sales beyond 55,000 pesos. If Pamela sold 81,500 worth of merchandise this month, what is her total gross salary? 2. John is a realtor agent. He receives 5% commission when he sells a condo unit. How much commission will he receive for selling a condo unit that cost 3,500,000 pesos? 3. Randy was paid a commission of 8.5% on his total sales. If his sales were P13,000, P15,000, P25,000, P30,000, and 33, 000 pesos consecutively, find his gross earnings.

Answer 2

Question

Chapter 15, Problem 1P

Sub-part

A

To determine

the average money balance during the pay period.

Concept Introduction:

The velocity of money is affected by many financial innovations of exchanging money. The frequency of wages is also an important factor that determines the velocity of money. Since payment practices change slowly over time, their effects on velocity can be anticipated. The more often workers get paid, keeping things constant, the lower their average money balances, so the more active the money supply and the greater its velocity. Thus, to increase the average money balance, the wages should not be paid very frequently but at long regular intervals which enables the worker to plan their spending.

Sub-part

A

Expert Solution

Explanation of Solution

Since I spend my money at a constant rate during the month, I use the same amount everyday which leaves my average money balance to be $1,00030=$33.33 during the pay period.

Sub-Part

B

To determine

the average monthly balance in each of the circumstances.

Concept Introduction:

The velocity of money is affected by many financial innovations of exchanging money. The frequency of wages is also an important factor that determines the velocity of money. Since payment practices change slowly over time, their effects on velocity can be anticipated. The more often workers get paid, keeping things constant, the lower their average money balances, so the more active the money supply and the greater its velocity. Thus, to increase the average money balance, the wages should not be paid very frequently but at long regular intervals which enables the worker to plan their spending.

Sub-Part

B

Expert Solution

Explanation of Solution

I spend at a constant rate, so getting $500 twice monthly instead of $1,000 once, would lower my average money balance to $5,0030=$16.67 .
If I am uncertain about my total spendings, I would keep hold some money and thus, my average money balance would increase as it would be more than zero.
Spending more in the beginning of the month would make reduce the amount of money with me, thus, this reduce the average money balance.
If the income increases from $1,000, it will increase the average money balance.

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Answer 3

Question

Chapter 15, Problem 1P

Sub-part

A

To determine

the average money balance during the pay period.

Concept Introduction:

The velocity of money is affected by many financial innovations of exchanging money. The frequency of wages is also an important factor that determines the velocity of money. Since payment practices change slowly over time, their effects on velocity can be anticipated. The more often workers get paid, keeping things constant, the lower their average money balances, so the more active the money supply and the greater its velocity. Thus, to increase the average money balance, the wages should not be paid very frequently but at long regular intervals which enables the worker to plan their spending.

Sub-part

A

Expert Solution

Explanation of Solution

Since I spend my money at a constant rate during the month, I use the same amount everyday which leaves my average money balance to be $1,00030=$33.33 during the pay period.

Sub-Part

B

To determine

the average monthly balance in each of the circumstances.

Concept Introduction:

The velocity of money is affected by many financial innovations of exchanging money. The frequency of wages is also an important factor that determines the velocity of money. Since payment practices change slowly over time, their effects on velocity can be anticipated. The more often workers get paid, keeping things constant, the lower their average money balances, so the more active the money supply and the greater its velocity. Thus, to increase the average money balance, the wages should not be paid very frequently but at long regular intervals which enables the worker to plan their spending.

Sub-Part

B

Expert Solution

Explanation of Solution

I spend at a constant rate, so getting $500 twice monthly instead of $1,000 once, would lower my average money balance to $5,0030=$16.67 .
If I am uncertain about my total spendings, I would keep hold some money and thus, my average money balance would increase as it would be more than zero.
Spending more in the beginning of the month would make reduce the amount of money with me, thus, this reduce the average money balance.
If the income increases from $1,000, it will increase the average money balance.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 15, Problem 1P

Sub-part

A

To determine

the average money balance during the pay period.

Concept Introduction:

The velocity of money is affected by many financial innovations of exchanging money. The frequency of wages is also an important factor that determines the velocity of money. Since payment practices change slowly over time, their effects on velocity can be anticipated. The more often workers get paid, keeping things constant, the lower their average money balances, so the more active the money supply and the greater its velocity. Thus, to increase the average money balance, the wages should not be paid very frequently but at long regular intervals which enables the worker to plan their spending.

Sub-part

A

Expert Solution

Explanation of Solution

Since I spend my money at a constant rate during the month, I use the same amount everyday which leaves my average money balance to be $1,00030=$33.33 during the pay period.

Sub-Part

B

To determine

the average monthly balance in each of the circumstances.

Concept Introduction:

The velocity of money is affected by many financial innovations of exchanging money. The frequency of wages is also an important factor that determines the velocity of money. Since payment practices change slowly over time, their effects on velocity can be anticipated. The more often workers get paid, keeping things constant, the lower their average money balances, so the more active the money supply and the greater its velocity. Thus, to increase the average money balance, the wages should not be paid very frequently but at long regular intervals which enables the worker to plan their spending.

Sub-Part

B

Expert Solution

Explanation of Solution

I spend at a constant rate, so getting $500 twice monthly instead of $1,000 once, would lower my average money balance to $5,0030=$16.67 .
If I am uncertain about my total spendings, I would keep hold some money and thus, my average money balance would increase as it would be more than zero.
Spending more in the beginning of the month would make reduce the amount of money with me, thus, this reduce the average money balance.
If the income increases from $1,000, it will increase the average money balance.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 15, Problem 1P

Sub-part

A

To determine

the average money balance during the pay period.

Concept Introduction:

The velocity of money is affected by many financial innovations of exchanging money. The frequency of wages is also an important factor that determines the velocity of money. Since payment practices change slowly over time, their effects on velocity can be anticipated. The more often workers get paid, keeping things constant, the lower their average money balances, so the more active the money supply and the greater its velocity. Thus, to increase the average money balance, the wages should not be paid very frequently but at long regular intervals which enables the worker to plan their spending.

Sub-part

A

Expert Solution

Explanation of Solution

Since I spend my money at a constant rate during the month, I use the same amount everyday which leaves my average money balance to be $1,00030=$33.33 during the pay period.

Sub-Part

B

To determine

the average monthly balance in each of the circumstances.

Concept Introduction:

The velocity of money is affected by many financial innovations of exchanging money. The frequency of wages is also an important factor that determines the velocity of money. Since payment practices change slowly over time, their effects on velocity can be anticipated. The more often workers get paid, keeping things constant, the lower their average money balances, so the more active the money supply and the greater its velocity. Thus, to increase the average money balance, the wages should not be paid very frequently but at long regular intervals which enables the worker to plan their spending.

Sub-Part

B

Expert Solution

Explanation of Solution

I spend at a constant rate, so getting $500 twice monthly instead of $1,000 once, would lower my average money balance to $5,0030=$16.67 .
If I am uncertain about my total spendings, I would keep hold some money and thus, my average money balance would increase as it would be more than zero.
Spending more in the beginning of the month would make reduce the amount of money with me, thus, this reduce the average money balance.
If the income increases from $1,000, it will increase the average money balance.

Answer 6

Chapter 15, Problem 1P

Sub-part

A

To determine

the average money balance during the pay period.

Concept Introduction:

The velocity of money is affected by many financial innovations of exchanging money. The frequency of wages is also an important factor that determines the velocity of money. Since payment practices change slowly over time, their effects on velocity can be anticipated. The more often workers get paid, keeping things constant, the lower their average money balances, so the more active the money supply and the greater its velocity. Thus, to increase the average money balance, the wages should not be paid very frequently but at long regular intervals which enables the worker to plan their spending.

Sub-part

A

Expert Solution

Explanation of Solution

Since I spend my money at a constant rate during the month, I use the same amount everyday which leaves my average money balance to be $1,00030=$33.33 during the pay period.

Answer 7

Chapter 15, Problem 1P

Sub-part

A

To determine

the average money balance during the pay period.

Concept Introduction:

The velocity of money is affected by many financial innovations of exchanging money. The frequency of wages is also an important factor that determines the velocity of money. Since payment practices change slowly over time, their effects on velocity can be anticipated. The more often workers get paid, keeping things constant, the lower their average money balances, so the more active the money supply and the greater its velocity. Thus, to increase the average money balance, the wages should not be paid very frequently but at long regular intervals which enables the worker to plan their spending.

Answer 8

Sub-part

A

Expert Solution

Explanation of Solution

Since I spend my money at a constant rate during the month, I use the same amount everyday which leaves my average money balance to be $1,00030=$33.33 during the pay period.

Answer 9

Sub-part

A

Expert Solution

Answer 10

Sub-part

A

Expert Solution

Answer 11

Expert Solution

Answer 12

Sub-Part

B

To determine

the average monthly balance in each of the circumstances.

Concept Introduction:

The velocity of money is affected by many financial innovations of exchanging money. The frequency of wages is also an important factor that determines the velocity of money. Since payment practices change slowly over time, their effects on velocity can be anticipated. The more often workers get paid, keeping things constant, the lower their average money balances, so the more active the money supply and the greater its velocity. Thus, to increase the average money balance, the wages should not be paid very frequently but at long regular intervals which enables the worker to plan their spending.

Sub-Part

B

Expert Solution

Explanation of Solution

I spend at a constant rate, so getting $500 twice monthly instead of $1,000 once, would lower my average money balance to $5,0030=$16.67 .
If I am uncertain about my total spendings, I would keep hold some money and thus, my average money balance would increase as it would be more than zero.
Spending more in the beginning of the month would make reduce the amount of money with me, thus, this reduce the average money balance.
If the income increases from $1,000, it will increase the average money balance.

Answer 13

Sub-Part

B

To determine

the average monthly balance in each of the circumstances.

Concept Introduction:

The velocity of money is affected by many financial innovations of exchanging money. The frequency of wages is also an important factor that determines the velocity of money. Since payment practices change slowly over time, their effects on velocity can be anticipated. The more often workers get paid, keeping things constant, the lower their average money balances, so the more active the money supply and the greater its velocity. Thus, to increase the average money balance, the wages should not be paid very frequently but at long regular intervals which enables the worker to plan their spending.

Answer 14

Sub-Part

B

Expert Solution

Explanation of Solution

I spend at a constant rate, so getting $500 twice monthly instead of $1,000 once, would lower my average money balance to $5,0030=$16.67 .
If I am uncertain about my total spendings, I would keep hold some money and thus, my average money balance would increase as it would be more than zero.
Spending more in the beginning of the month would make reduce the amount of money with me, thus, this reduce the average money balance.
If the income increases from $1,000, it will increase the average money balance.