A Ceiling on Interest Rates Results In

question 236

Multiple Choice

A ceiling on interest rates results in:

• A) a surplus of loanable funds.
• B) a shortage of loanable funds.
• C) a decrease in the demand for borrowing.
• D) an increase in the supply of loanable funds.

---

Definitions:

Inventory Available

The total quantity of goods a company has on hand for sale at any given time, including both finished goods and goods in production.

Current Asset

Assets that are expected to be converted into cash, sold, or consumed within one year or within the company’s normal operating cycle if longer.

Plant and Equipment

Plant and Equipment are long-term assets used in the operation of a business, not intended for resale, including machinery, buildings, and vehicles.

Long-Term Liabilities

Obligations that are not due or payable for a long time, usually for more than a year.