Everything Else Held Constant,an Increase in the Interest Rate Paid

question 151

Multiple Choice

Everything else held constant,an increase in the interest rate paid on checkable deposits will cause ________ in the amount of checkable deposits held relative to currency holdings and ________ in the currency ratio.

• A)an increase;an increase
• B)an increase;a decrease
• C)a decrease;an increase
• D)a decrease;a decrease

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Definitions:

Temporary Accounts

Accounts in the general ledger that are closed at the end of the accounting period, transferring their balances to permanent accounts.

Chart of Accounts

A systematic listing of all accounts used in the ledger of an organization, categorized by assets, liabilities, equity, revenue, and expenses.

Re-sort List

The action of organizing or rearranging items in a list according to a different criterion or sequence.

Fixed Asset

Long-term tangible property that a company owns and uses in its operations to generate income, such as buildings, machinery, and equipment.