Answer the Question on the Basis of the Following Table

question 53

Multiple Choice

Answer the question on the basis of the following table: $\begin{array}{c}\begin{array}{c}\\\text { Interest }\\\text { Rate } \\\hline 2 \% \\4 \\6 \\8 \\10 \end{array}\begin{array}{c}\text {Transaction}\\\text {Demand for}\\\underline{\text {Money}}\\ \$ 220 \\220\\220\\220\\220\end{array}\begin{array}{c}\\\text {Asset Demand }\\\underline{\text {for Money}}\\\$ 300 \\280 \\260 \\240 \\220\end{array}\begin{array}{c}\\\text {Money}\\\underline{\text {Supply}}\\\$ 460 \\460\\460\\460\\460\end{array}\end{array}$

Refer to the given table.The equilibrium interest rate is:

• A) 2 percent.
• B) 4 percent.
• C) 6 percent.
• D) 8 percent.

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Definitions:

Bad Check

A check that cannot be processed because the account on which it was drawn lacks sufficient funds.

Article 2

A section of the Uniform Commercial Code (UCC) that governs the sale of goods in the United States, detailing rights, obligations, and warranties in sales contracts.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, including sales and leases of goods.

Current Practices

The existing methods, procedures, or techniques that are widely used or employed in a particular field or industry.