For the Following Questions Refer to Figure 15

question 38

Multiple Choice

For the following questions refer to Figure 15.3 below.
-Consider Figure 15.3.A possible cause for the fall in the saving rate between 1980 and 2005 is:

• A)precautionary saving.
• B)consumption smoothing.
• C)the changing composition of households' savings portfolios.
• D)increasing competition among commercial banks.
• E)less access to credit markets.

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Definitions:

Collection Time

The typical duration required for a company to collect payments due from its clients.

Amounts

Amounts refer to the quantities or sums of money involved in financial transactions or measurements.

Net Present Value

A calculation that compares the value of money now with the value of that money in the future, accounting for inflation and returns.

Lockbox System

A service offered by banks to companies for the receipt of payment from customers, involving the collection and processing of cheque payments at a secure location.