A Business Cycle Is

question 260

Multiple Choice

A business cycle is

• A) the pattern of short-run upward and downward movements in total output.
• B) the increase in consumer spending that accompanies an increase in disposable income.
• C) the cyclical change in the nation's balance of trade.
• D) the cyclical movement in the interest rates.

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Definitions:

Instrument

A legal document formally evidencing an obligation or right, such as checks, promissory notes, or securities.

Holder

A person who is in possession of a negotiable instrument that is issued or indorsed to that person’s order or to bearer.

Negotiable Instrument

A written document that is signed by the maker or drawer and that contains an unconditional promise or order to pay a certain sum of money on delivery or at a definite time to the bearer or to order.

Holder in Due Course

A legal term describing a party who has acquired a negotiable instrument in good faith and for value, thereby having certain protections against defenses and claims.