Suppose That a New Bond Rating Service Is Established That

question 78

Multiple Choice

Suppose that a new bond rating service is established that specializes in rating municipal bonds that had not previously been rated. The likely result would be

• A)a shift to the right in the demand curve for bonds.
• B)a shift to the left in the supply curve for loanable funds.
• C)an increase in the equilibrium interest rate.
• D)a decrease in the equilibrium interest rate.

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Definitions:

Cash Payments

Outflows of cash by a business to settle obligations, such as paying expenses, debts, or purchasing assets.

Payroll Register

A multicolumn report used to assemble and summarize payroll data at the end of each payroll period.

Multicolumn Form

A formatting style used in accounting and bookkeeping that uses multiple columns to represent and organize financial information and transactions.

Unemployment Compensation Tax

A tax paid by employers to fund unemployment benefits for workers who have lost their jobs.