The "J-Curve Effect

question 93

Multiple Choice

The "J-curve effect"

• A)happens most of the time,in the short run.
• B)only occurs in about 40 percent of cases,according to a study by Sebastian Edwards.
• C)is a long-run phenomenon,not a short-run one.
• D)none of the options

---

Definitions:

Cheques Deposited

The process of placing cheques received into a bank account to be processed and the funds credited to the account holder.

Clear

To settle a trade or transaction by exchanging financial instruments or the legal process of resolving a dispute.

Zero Balance Accounts

Bank accounts that are maintained at a zero balance by automatically transferring funds from a master account in an exact amount only when checks are presented.

Payroll Account

A bank account specifically used by businesses to process salary payments to their employees.