The Following Figure Shows Two Credit Demand Curves, CD₁ and CD₂

question 163

Multiple Choice

The following figure shows two credit demand curves, CD₁ and CD₂, and two credit supply curves, CS₁ and CS₂.

-Refer to the figure above.What is the equilibrium rate of interest when the credit demand curve is CD₁ and the credit supply curve is CS₁?

• A) 2 percent
• B) 3 percent
• C) 4 percent
• D) 5 percent

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Definitions:

NSF

Stands for "Non-Sufficient Funds," indicating a situation where an account does not have enough money to cover a check or withdrawal.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and equity.

Adjusted Balance

An accounting figure reached after adjusting the book balance of an account for checks and deposits in transit, fees, or errors.

Balance Per Bank

The amount of money that a company's bank account shows according to the bank's records.