Which of the Following Statements Is True

question 36

Multiple Choice

Which of the following statements is true?

• A) Interest rates are directly related to the price of old or existing bonds.
• B) The monetarist transmission mechanism is indirect whereas the Keynesian transmission mechanism is direct.
• C) The interest rate is the opportunity cost of holding money.
• D) a and b
• E) a,b and c

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Definitions:

Posting

The process of transferring financial information from the journal to the respective accounts in the ledger, a crucial step in the accounting cycle.

Cash Account

A financial account that records cash transactions in and out.

Posting Reference

A code or number used in accounting to indicate the ledger account to which a transaction has been posted.

Journal Entry

A record in the books of accounts that documents a financial transaction, showing the accounts and amounts debited and credited.