Choose the Correct Statement

question 48

Multiple Choice

Choose the correct statement.

• A)Demand and supply in the loanable funds market determine the long-term real interest rate.
• B)The long-term real interest rate influences expenditure decisions.
• C)In the short run, the supply of loanable funds is influenced by the supply of bank loans.
• D)A fall in the overnight loans rate that increases the supply of bank loans increases the supply of loanable funds and lowers the equilibrium real interest rate.
• E)All of the above are correct.

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Definitions:

Service Charge

A fee collected for the provision of a service, often added to the base cost of the service.

Credit Card

A payment card issued to users as a method of payment allowing the cardholder to pay for goods and services based on the holder's promise to pay for them.

Journal Entry

A record in the books of accounts that shows a business transaction and its effect on the company's finances.

Percent of Receivables Method

An accounting method used to estimate the amount of accounts receivable that will not be collected by calculating a percentage of receivables deemed uncollectible.