An Increase in the Interest Rate Causes

question 212

Multiple Choice

An increase in the interest rate causes

• A)a movement up along the money demand curve.
• B)a movement down along the money demand curve.
• C)the money demand curve to shift to the left.
• D)the money demand curve to shift to the right.

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Definitions:

Master Account

A central account that holds funds or securities, often used by institutions to manage multiple sub-accounts.

Available Balance

The amount of funds in a bank account that is accessible for withdrawal or processing of checks or electronic payments, not including any holds, unprocessed transactions, or restrictions.

Cheque Book

A booklet of cheques provided by a bank allowing the account holder to pay others by writing cheques.

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity, typically including a balance sheet, income statement, and cash flow statement.