When the receipts given by goldsmiths to depositors were used to make purchases:
A. existing banking laws were violated.
B. the receipts became in effect paper money.
C. the gold standard was created.
D. a fractional reserve banking system was created.
Answer: B
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If the production of a good causes an external cost, then the efficient quantity is
A) equal to the quantity at which the marginal benefit equals marginal cost. B) less than the quantity at which the marginal benefit equals the marginal cost. C) more than the quantity at which the marginal benefit equals the marginal cost. D) the quantity at which the marginal private benefit is greater than the marginal social benefit. E) None of the above answers is correct.
Open market operations refers to the Fed's
A) manipulation of the required reserve ratio. B) purchase and sale of government bonds. C) manipulation of the discount rate. D) use of all of the above techniques.
Make a case for income inequality
The opportunity cost of any action is
a. irrelevant to economic theory b. limited to the out-of-pocket cost incurred c. the sunk cost plus the markup on materials and labor d. what we gain in the process of consumption e. what is sacrificed to pursue that action