Which of the Following Is a Correct Statement

question 71

Multiple Choice

Which of the following is a correct statement?

• A) Rent control and the minimum wage are both illustrations of price floors.
• B) Rent control is an illustration of a price floor and the minimum wage is an illustration of a price ceiling.
• C) Rent control and the minimum wage are neither illustrations of price floors nor price ceilings.
• D) Rent control is an illustration of a price ceiling and the minimum wage is an illustration of a price floor.
• E) Rent control and the minimum wage are both illustrations of price ceilings.

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholder members. It is the share of profits distributed in cash.

Borrower's Creditworthiness

An assessment of a borrower's ability to repay their debts on time, often considered by lenders before issuing a loan.

Commercial Lending

The practice of lending money to businesses for various purposes such as operations, expansion, or capital equipment purchases.

Current Ratio

A liquidity ratio that measures a company’s ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.