Use the Following Information to Answer Questions

question 17

Multiple Choice

Use the following information to answer Questions
In the current year, the City of Katerah earned $24,000 on the principal of a private-purpose trust fund but disbursed only $20,000.
-During the current year the private-purpose trust fund will recognize, related to earnings:

• A)$24,000 revenues.
• B)$20,000 revenues.
• C)$24,000 addition to net assets.
• D)$20,000 addition to net assets.

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Definitions:

Interest Rates

The sum charged by a lender, presented as a percentage of the principal, for a borrower’s access to assets.

Supply Of Money

The total amount of monetary assets available in an economy at a specific time, including cash, bank deposits, and liquid financial assets.

Shortage Or Surplus

Economic conditions where the quantity demanded exceeds supply (shortage) or supply exceeds demand (surplus) at a given price.

Decrease In Supply

A situation where the quantity of a good or service available for sale becomes less than before, often due to factors like increased production costs, natural disasters, or reduced resources.