Net Deposit Drains Refer to the Amount by Which Cash

question 76

Multiple Choice

Net deposit drains refer to the amount by which cash withdrawals:

• A)are less than additions-this is a cash outflow
• B)are less than additions-this is a cash inflow
• C)exceed additions-this is a cash outflow
• D)exceed additions-this is a cash inflow

---

Definitions:

Elastic Supply

A situation where the quantity supplied changes significantly in response to changes in price.

Elastic Demand

A situation where the demand for a product or service significantly changes in response to a change in price.

Inelastic Supply

A situation where the quantity supplied of a good is not significantly affected by a change in price.

Elastic Demand

A market condition where the demand for a product is sensitive to price changes, meaning that a small change in price results in a large change in the quantity demanded.