An Increase in Income Will Cause

question 71

Multiple Choice

An increase in income will cause

• A)a reduction in the supply of central bank money.
• B)a reduction in the demand for currency.
• C)an increase in the demand for reserves.
• D)none of the above

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Definitions:

Fair Value

An estimate of the market value of an asset or liability, based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership share in a corporation.

Journal Entries

The recordings of financial transactions in the bookkeeping system of a business, which include the debits and credits affecting the company's accounts.

Par Value

The nominal or face value of a share of stock as designated by the issuing corporation, playing a role in legal capital requirements.