A Decrease in the Interest Rate Due to an Increase

question 84

Multiple Choice

A decrease in the interest rate due to an increase in the supply of loanable funds is referred to as the __________ effect.

• A) expectations
• B) liquidity
• C) income
• D) a and c
• E) a,b and c

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Definitions:

NSF Check

A check that cannot be processed due to insufficient funds in the account on which it was drawn.

Bank Reconciliation

The process of matching the balances in an organization's accounting records for a cash account to the corresponding information on a bank statement.

Outstanding Checks

Checks that have been written and recorded in the paying company's books but have not yet been cashed by the recipient.

Notes Receivable

Claims against others for money, goods, or services evidenced by written promises to pay.