Which of the following best characterizes the circular flow of income?
1. Businesses buy resources from the government, and households buy goods and services from businesses.
2. Businesses buy resources from households, and households use their income from the sale of resources to buy goods and services from businesses.
3. The government purchases resources from businesses and households and then sells goods and services to businesses and households.
4. Households buy factors of production from businesses, and businesses buy goods and services from households.

Sarah borrowed $16,500 on may 23 with interest due on september 3. if the interest rate is 9%, find the interest on the loan using exact interest and ordinary interest.

The federal reserve's organization while all members of the federal reserve board of governors vote at federal open market committee (fomc) meetings, only of the regional bank presidents are members of the fomc. the federal reserve's role as a lender of last resort involves lending to which of the following financially troubled institutions? u. s. banks that cannot borrow elsewhere governments in developing countries during currency crises u. s. state governments when they run short on tax revenues the federal reserve's primary tool for changing the money supply is . in order to decrease the number of dollars in the u. s. economy (the money supply), the federal reserve will government bonds.

Wilson company paid $5,000 for a 4-month insurance premium in advance on november 1, with coverage beginning on that date. the balance in the prepaid insurance account before adjustment at the end of the year is $5,000, and no adjustments had been made previously. the adjusting entry required on december 31 is: (a) debit cash. $5,000: credit prepaid insurance. $5,000. (b) debit prepaid insurance. $2,500: credit insurance expense. $2500. (c) debit prepaid insurance. $1250: credit insurance expense. $1250. (d) debit insurance expense. $1250: credit prepaid insurance. $1250. (e) debit insurance expense. $2500: credit prepaid insurance. $2500.