Borrowing Cash from a Bank Would Result in Which of the Following

question 63

Multiple Choice

Borrowing cash from a bank would result in which of the following?

• A)A debit to cash and a credit to notes payable.
• B)A debit to notes payable and a credit to cash.
• C)A debit to both cash and notes payable.
• D)A debit to cash and a credit to contributed capital.

---

Definitions:

Consumption Sector

Part of the economy that involves the purchase of goods and services by individuals and households.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing or the true yield on an investment.

Nominal Rate

The interest rate before adjustments for inflation, as opposed to the real rate, which is adjusted for the effects of inflation.

Expected Rate

The anticipated yield or return on an investment during a specific period, often estimated based on historical data and future projections.