The Only Exception to the Economic Strength of the Mid-1980s

question 1

Multiple Choice

The only exception to the economic strength of the mid-1980s was

• A) The weak housing market
• B) Low consumer spending
• C) Still-high inflation
• D) High deficit spending

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Definitions:

Treasury Bills

Short-term government securities issued at a discount from par value and maturing at face value, with maturities ranging from a few days to 52 weeks.

Lockbox System

A service provided by banks to companies for the receipt of payment from customers, involving the use of a post office box to collect and process payments.

Collection Float

The time gap between when a check is deposited and when the funds are available in the recipient's account, affecting the cash flow of businesses.

Cheques

Paper instruments that direct banks to pay a specified amount of money from a person's account to the person in whose name the cheque has been issued.