If the Amount of Money to Be Lent Is Exactly

question 7

Multiple Choice

If the amount of money to be lent is exactly equal to the amount desired to be borrowed then the market is cleared at:

• A) the equilibrium interest rate.
• B) the marginal rate of substitution.
• C) the crossover rate.
• D) the short term yield curve rate.

---

Definitions:

Imprest Petty Cash

A fixed amount of cash used for small, incidental expenses, replenished periodically.

Petty Cash Receipts

Documents that provide evidence of small, incidental purchases made using a company's petty cash funds.

Fund Replenishment

The process of adding money to a fund to return it to its initial level or to support continued use or operation.

Petty Cash Fund

A small amount of cash kept on hand for minor or unexpected expenses.