Which of the Following Is Most Likely to Be an Untraded

question 33

Multiple Choice

Which of the following is most likely to be an untraded good in a Ricardian two-country, multi-good model?

• A) steel
• B) textiles
• C) haircuts
• D) petroleum
• E) telemarketer services

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Definitions:

Check Clearing

The process by which banks settle transactions made by checks, ensuring that the funds move from the check writer's account to the recipient's.

Fractional Reserve Banking

A system in which depository institutions held reserves that are less than the amount of total deposits.

Actual Reserves

The amount of funds that a bank has on hand and in reserve accounts, which can be used to meet any withdrawal or payment demands.

Vault Cash

The physical currency a bank holds in its vault as part of its required reserves or for daily operations.