Use the Following to Answer Questions

question 129

Multiple Choice

Use the following to answer questions .
Exhibit: Changes in the Money Supply
-(Exhibit: Changes in the Money Supply) Following the increase in money supply, at the original interest rate of 6%, there is

• A) an excess demand for money.
• B) an excess supply of money.
• C) an equilibrium in the money market.
• D) pressure for the interest rate to rise.

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Definitions:

Fiduciary Duty

An obligation one party (fiduciary) has to act in the best interest of another (the principal) in situations that require trust, honesty, and loyalty.

Compete

To engage in an effort to win or achieve something, such as business or market share, by excelling over others.

Reimbursed

To be reimbursed means to receive repayment for money that has been spent or lost, usually as a result of conducting business or performing tasks on behalf of another.

Apparent Authority

A situation where a person appears to have been given the power to act on behalf of another, even if no actual authority was granted.