In the figure above, which of the following represents a money flow?
A) Goods purchased
B) Interest
C) Capital
D) Services sold
E) Goods supplied
B
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Among the United States, Canada, Russia, India, and the United Kingdom, the country with the highest average income per person is
A) the United Kingdom. B) India. C) Canada. D) Russia. E) the United States.
A key reason that Congress established the Fed to act as a lender of last resort was to prevent ________, the process by which a run on one bank spreads to other banks, resulting in a bank panic
A) contagion B) asset inflation C) moral hazard D) bailouts
If you were the Chairman of the Fed and faced inflation, you would most likely
a. increase commercial bank reserves by raising the discount rate b. increase commercial bank reserves by buying government securities c. decrease commercial bank reserves by lowering the discount rate d. decrease commercial bank reserves by selling government securities e. decrease commercial bank reserves by lowering the legal reserve requirement
Suppose the U.S. government banned the sale and production of cigarettes. Which of the following would be most likely to occur?
a. No one would smoke anymore. b. The amount of violence involved in the buying and selling of cigarettes would increase. c. The price of cigarettes would decrease. d. The supply for cigarettes would become elastic.