What is the appropriate section in the statement of cash flows for reporting the purchase of equipment for cash?

What is the appropriate section in the statement of cash flows for reporting the purchase of equipment for cash?

a. operating activities

b. financing activities

c. investing activities

d. schedule of non-cash investing or financing activities

e. none of the above

Answer: The correct answer is “high.”

When inflation rates become high, the Fed controls the money supply in order to slow down the rate of economic growth. Inflation is the tendency where the overall price of products and services increases over a while with a negative impact on buyers and sellers. When inflation rates go higher than the particular range targeted by the Fed, this is suggestive of an economy that is too hot with too much demand. To curb high inflation, the monetary policy usually involves increasing the interest rates with the view of reducing the purchasing power of money by those who borrow. This measure serves the purpose of slowing down the rate of economic activity which makes consumer spending and investments and this helps to restore the equilibrium between demand and supply in order to address the issue of high prices.