A firm has 1000 in its bank account during March 19XO. It has no transactions affecting
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A firm has £ 1000 in its bank account during March 19XO. It has no transactions affecting the bank account in this month. During the month the index of retail prices rose from 100 to 105, but the specific index relating to the assets normally traded by the firm decreased from 200 to 180. Explain whether the firm is better or worse off. Quantify the amounts involved.
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