Use the Fact Situation Below to Answer the Questions That

question 60

Multiple Choice

Use the fact situation below to answer the questions that follow. John owes Edward a sum of money and gives Edward a cheque made out to Edward for the amount he owes.Edward also owes a sum of money to Albert,and on receiving the cheque from John,Edward signs his name only on the back of the cheque.
When Edward delivers the cheque to Albert,the cheque becomes

• A)a bearer cheque.
• B)an assignment cheque.
• C)a promissory note.
• D)an endorsement cheque.
• E)all of the above

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Definitions:

Disposable Income

The collective fiscal pool available to households for spending and saving post income tax engagements.

Induced Consumption

The concept in Keynesian economics referring to the portion of consumer spending that increases with income. Higher income levels tend to lead to higher consumer spending.

Disposable Income

The total financial resources available to people or households for savings and expenses after subtracting income tax.

Saving

The process of setting aside a portion of current income for future use, either by depositing it into a bank or purchasing a financial asset.