Which of the Following Will Probably NOT Result in an Increase

question 48

Multiple Choice

Which of the following will probably NOT result in an increase in the business demand for loanable funds?

• A)an increase in economic growth
• B)a reduction in interest rates on business loans
• C)a recession
• D)None of these are correct.

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control those policies; often evidenced by ownership of 20% to 50% of the voting shares of the investee.

Fair Value

The revenue generated from selling an asset or the charge for relocating a liability in a formal trade between market counterparts at the appraisal time.

Journal Entries

Records that note the details of financial transactions in accounting, following the double-entry bookkeeping method.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control them, often associated with ownership of 20% to 50% of voting stock.