Which of the Following Would Represent a Use of Funds

question 10

Multiple Choice

Which of the following would represent a use of funds and, indirectly, a reduction in cash balances?

• A) An increase in inventories
• B) A decrease in marketable securities
• C) An increase in accounts payable
• D) The sale of new bonds by the firm

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Definitions:

Aggregate Supply Curve

A graphical representation showing the total supply of goods and services that firms in an economy are willing and able to produce at different price levels.

Maximum Output Level

The highest quantity of goods or services an economy or enterprise can produce using its current resources and technology.

Cyclical Unemployment

When people are out of work because the economy is operating below the full-employment level. It rises sharply during recessions.

Classical Economists

Economists from the late 18th and early 19th centuries who focused on the development of concepts like supply and demand, and the invisible hand theory.