Jen Signs a Check "Pay to the Order of Kev

question 51

Multiple Choice

Jen signs a check "pay to the order of Kev" drawn on Jen's account in Little Bank to buy Kev's car.Jen asks Little Bank to indicate on the face of the check that it will accept it when Kev presents it for payment.If the bank agrees,this will be

• A)a cashier's check.
• B)a certified check.
• C)a trade acceptance.
• D)a traveler's check.

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Definitions:

Substitution Effect

This effect describes the change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute more expensive items with cheaper ones.

Output Effect

The impact on total output or production resulting from changes in the price level or other economic factors.

Price of Capital

The cost of using capital goods, represented by interest rates, lease payments, or other measures of the cost of borrowing or using capital.

Marginal Revenue Product

The additional revenue generated from employing one additional unit of a resource, such as labor or capital.