An Increase in the Monetary Base (The Supply of Overnight

question 92

Multiple Choice

An increase in the monetary base (the supply of overnight money) will shift the

• A)supply of loanable funds to the right.
• B)supply of loanable funds to the left.
• C)demand for loanable funds to the right.
• D)demand for loanable funds to the left.

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Definitions:

Negotiable Instrument

A financial document providing assurance for the payment of a given amount of money, either to be paid on demand or at an agreed time, with the document containing the name of the payee.

Writing Requirement

A legal condition under certain laws requiring certain contracts to be in writing to be enforceable.

Order Instrument

A financial document that is payable to a specific person or entity, as named or endorsed on the instrument.

Specific Payee

A person or entity named in a negotiable instrument to whom or to whose order the money is directed to be paid.