From 2007 to 2008, the Federal Reserve System Reduced Interest

question 260

Multiple Choice

From 2007 to 2008, the Federal Reserve System reduced interest rates, the price which borrowers pay.As a result, economists expected that the quantity of money supplied would

• A)increase.
• B)decrease.
• C)not change.
• D)Uncertain-economic theory has no answer to this question.

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Definitions:

Cash Dividend

A disbursement from a corporation to its shareholders, typically issued in cash, derived from its profits.

Payable

Short-term financial obligations or debts of a company, typically to suppliers, that are due to be paid within one year.

Cash Dividend

A payment made by a company out of its profits to shareholders, usually in the form of cash.

Dividends Payable

A liability on a company's balance sheet representing the amount of declared dividends that are owed to shareholders but not yet paid.