Business Borrowing Becomes More Difficult When ________

question 71

Multiple Choice

Business borrowing becomes more difficult when ________.

• A)the federal government increases spending
• B)the federal government decreases spending
• C)the Federal Reserve decreases the money supply
• D)the Federal Reserve increases the money supply

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Definitions:

First Quarter

The initial three-month period in a fiscal year; often used in financial reporting and analysis.

Service Business

A type of business that provides intangible products or services to consumers, as opposed to selling physical goods.

Overhead

General, ongoing business expenses not directly attributed to creating a product or service, including rent, utilities, and insurance.

Direct Labor

Labor costs that are directly attributed to the production of goods, including wages for workers who manufacture a product or perform a service.