When Referring to a Note Receivable or Promissory Note

question 24

Multiple Choice

When referring to a note receivable or promissory note,

• A) the maker is the party to whom the money is due
• B) the note is not considered a formal credit instrument
• C) the note cannot be factored to another party
• D) the note may be used to settle an accounts receivable

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Definitions:

Nonbanking Public

The segment of the economy that does not include banks or financial institutions, generally referring to average consumers and businesses.

Money Supply

The complete tally of money-based assets available within an economy at a certain point, counting coins, cash, and holdings in savings and current accounts.

Reserve Requirement

A rephrased definition of Required Reserves: The regulation set by central banks determining the minimum amount of deposits that banks must hold as reserves and not lend out.

Discount Rate

The interest rate charged by central banks for loans to their member banks, influencing monetary policy and economic conditions.