For the following statements, state Agree or Disagree . And provide brief explan

Question

For the following statements, state Agree or Disagree. And provide brief explanations.

1. More than half of the money issues by the government is actually held by people in foreign countries. Australia is hence less than half as wealthy as government statistics indicate’.

2. Assets are things of value people own. Liabilities are debts. Hence, a bank will always consider a deposit in the account as an asset and a car loan as liability.

3. In 2010 hundreds of thousands of jobs were eliminated from the Australian economy. This means that unemployment rate must have risen.

Explanation / Answer

1.Disagree with this statement:-

Money issued by bank government is not the wealth of country. it is issued in the form of bonds or securities.Issued a bond is debt for a countries. many foriegn countries buy these bonds or securities which would become the debt of country not a wealth.government would pay back in maturity time with increment to foriegn countries or investors.

2. Disagree with the statement:-

Bank consider the deposits account as liability which owns the money from depositors which will pay after some period of the time with interest. and car loan as consider as an assets , debtors is liable to pay the loan back with interest. it means debtor owes the money of bank.

3.AGREE:-

When the unemployment rate rises in economy . it leads to people without jobs it is an increase in the percentage of unemployed person in the economy.

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