A system in which depository institutions hold reserves that are less than the amount of total deposits is called
A) central banking system. B) required reserve banking.
C) fiat money banking. D) fractional reserve banking.
D
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Refer to Figure 18.1. After trade begins, ________ will specialize in the production of bicycles and ________ will specialize in the production of hang gliders
A) the United States; Canada B) the United States.; the United States C) Canada; Canada D) Canada; the United States
The demand for luxurious goods are usually unaffected by an increase in income
a. True b. False Indicate whether the statement is true or false
Cambridge Corporation sold buildings and a machine for cash. Indicate which section, if any, this transaction would appear in, or relate to, on a statement of cash flows.
A. Operating activities section B. Investing activities section C. Financing activities section D. Does not appear on cash flow statement
If the annual real interest rate on a 10-year inflation-protected bond equals 1.5 percent and the annual nominal rate of return on a 10-year bond without inflation protection is 4.2 percent, what average rate of inflation over the ten years would make holders of inflation-protected bonds and holders of bonds without inflation protection equally well off?
A. 4.2 percent B. 2.7 percent C. 1.5 percent D. 5.7 percent