Match the Following Terms with Their Definitions

question 57

Multiple Choice

Match the following terms with their definitions.
-Discount period

• A)Number of days bank will wait for its money in the discount process
• B)Cash paid on due date
• C)The principal
• D)Maturity value minus bank discount
• E)A written promise
• F)Bank deducts interest in advance
• G)Signs the note
• H)Rate bank charges in the discounting process
• I)True rate of interest
• J)Due date
• K)Ability to borrow quickly
• L)Amount bank charges in the discounting process
• M)Maturity value greater than original note

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Definitions:

Potential Output

The maximum output an economy can produce without causing inflation when all resources are fully employed.

Aggregate Demand Curve

A curve that illustrates the total demand for all goods and services in an economy at various price levels, assuming all other factors remain constant.

Short-Run Aggregate Supply Curve

A curve depicting the relationship between the total supply of goods and services produced by a country and the price level for that output in the short term, taking some input prices as fixed.

Treasury Securities

Debt instruments issued by a government to finance its spending, offering a safe investment option with a guaranteed rate of return.