Answer the Question Using the Table

question 97

Multiple Choice

Answer the question using the table. Figures are in billions of dollars. A usury law that sets the interest rate 4 percent below the market rate of interest will result in a shortage of loanable funds of

• A)$10 billion.
• B)$14 billion.
• C)$20 billion.
• D)$30 billion.

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Definitions:

Finished Goods Inventory

The inventory of completed products that are ready to be sold.

Beginning of Year

The start of a calendar or fiscal year, commonly used as a reference point for financial and accounting purposes.

Direct Material

Raw materials that are directly traceable to the production of a specific good or service.

Purchased

Refers to items or services that have been bought by a company from outside suppliers.