In 2008, the Many People Became Unable to Make Payments

question 101

Multiple Choice

In 2008, the many people became unable to make payments on their mortgages and instead defaulted on them. As a result, the ________ of loanable funds curve shifts ________ and real interest rate ________.

• A) supply; leftward; increases
• B) demand; leftward; increases.
• C) supply; rightward; falls.
• D) demand; rightward; decreases.

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Definitions:

Charges

Fee for services rendered.

Double-Entry Bookkeeping System

A bookkeeping method in which every transaction is entered twice, to two separate accounts, with one being a debit and the other a credit, to maintain the balance of the accounting equation.

Single-Entry System

A simple accounting system where each transaction is recorded with a single entry, typically used by small businesses or for personal finances.

Instant Access

The ability to obtain information or data immediately, without any delay.