During the Financial Crisis of 2008-2009, Many Financial Institutions in Canada

question 14

Multiple Choice

During the financial crisis of 2008-2009, many financial institutions in Canada reduced the amount of loans, even to creditworthy customers, which could be represented in the IS-LM model as a(n) :

• A)expansionary shift in the IS curve.
• B)contractionary shift in the IS curve.
• C)expansionary shift in the LM curve.
• D)contractionary shift in the LM curve.

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Definitions:

Managerial Accounting

Accounting practices aimed at aiding managers in planning, directing, and controlling operational activities through financial data analysis.

Budget Period

The specific timeframe for which a budget is prepared, usually a fiscal year or a specific project duration.

Credit Sales

Sales made by a business where payment is deferred, creating accounts receivable.

Projected Sales

An estimate of the amount of sales that a company expects to achieve in a future period.