If the Nominal Interest Rate Is High and Rising, a Possible

question 138

Multiple Choice

If the nominal interest rate is high and rising, a possible cause is

• A) increased lending activity.
• B) a rising inflation rate.
• C) a falling real interest rates.
• D) increased government borrowing.

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Definitions:

Service Revenue

Revenue generated from the provision of services to customers.

Accounts Receivable

Accounts Receivable refers to the money owed to a company by its customers for products or services delivered or used but not yet paid for.

Trial Balance

A bookkeeping report that lists the balances of all ledger accounts to verify that total debits equal total credits.

Asset

An economic resource owned or controlled by an individual or entity that is expected to produce future benefits.