The fractional reserve system of banking started when goldsmiths began:
A. Accepting deposits of gold for safe storage
B. Charging people who deposited their gold
C. Using deposited gold to produce products for sale to others
D. Issuing paper receipts in excess of the amount of gold held
D. Issuing paper receipts in excess of the amount of gold held
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Discuss the differences between developing and emerging market economies
What will be an ideal response?
In a representative democracy, there are
A. elected politicians. B. public employees. C. special interests. D. all of these answer options are correct.
The period starting around 200 years ago is important in economic history because this is approximately the time when
a. economies started to decline, resulting in lower standards of living. b. money was invented. c. economic growth began in some countries, resulting in sustained improvements in the standard of living. d. the world caught up to the standard of living of ancient Rome.
Two firms would sometimes be better off if they got together and agreed to charge a high price, rather than to compete and risk having to charge a lower, competitive price. What is the greatest deterrent to this strategy?
A) The firms may find that the price they charge is greater than the price that would maximize their profits. B) An agreement by firms to charge high prices is illegal. The government can fine the firms and send their managers to jail. C) Consumers may resent having to pay high prices and not buy from either of the firms. D) One of the firms may decide to lower its price and take business away from the firm that charged the high price.