A(n) ________ Is a Clause in an Instrument That Allows

question 9

Multiple Choice

A(n) ________ is a clause in an instrument that allows the payee or holder to speed up payment of the principal amount of the instrument, plus accrued interest, upon the occurrence of an event.

• A) acceleration clause
• B) prepayment clause
• C) extension clause
• D) forestallment clause

---

Definitions:

Equilibrium Point

Point at which quantity demanded equals quantity supplied; where demand and supply curves cross.

Equilibrium Price

The cost at which the amount of a product supplied matches the amount of the product desired.

Equilibrium Quantity

The supply of goods or services meets the demand at the market's equilibrium price.

Equilibrium Price

The price point at which the quantity of goods supplied equals the quantity of goods demanded, leading to a stable market condition.