Imagine a crude banking system based on a reserve of 100 gold coins, with circulating paper deposit claims on 500 gold coins
This situation is sustainable if, among other things, merchants ________ accept paper claims on gold as payment for their goods, and gold coins withdrawn from the banking system are ________ the system. A) will, returned to
B) will, kept out of
C) will not, returned to
D) will not, kept out of
A
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_____ is a monthly payment made by a franchisee to the franchisor usually a certain percentage of the former's gross revenue
a. Royalty b. Annuity c. Contingent fee d. Capitation fee
Transfer payments ___ counted in GDP. Also, they ___ a payment for a good or service the government received.
A. are, are B. are, are not C. are not, are D. are not, are not
A bank's required reserves are:
A. a financial liability for the Fed. B. a financial asset for the Fed. C. counted as money. D. a financial liability for the bank.
If the price elasticity of demand is very elastic, which of the following could be a possible value of the elasticity?
A. 2 B. 1 C. 1/3 D. 0