Prior to 1980,the Fed Set an Interest Rate ________,A Maximum

question 121

Multiple Choice

Prior to 1980,the Fed set an interest rate ________,a maximum limit,on the interest rate that could be paid on time deposits.

• A)floor
• B)ceiling
• C)wall
• D)window

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Definitions:

Accounts Receivable

Accounts receivable represents money owed to a business by its customers for goods or services delivered or used but not yet paid for.

Cash

Cash refers to money in the form of currency, including bills, coins, and money deposited in bank accounts that are available for use.

Business Transaction

An economic event or condition that directly changes an entity’s financial condition or directly affects its results of operations.

Journal

A detailed record where all financial transactions of a business are initially recorded in chronological order.