A Key Theme Fundamental to All of Economics Is

question 103

Multiple Choice

A key theme fundamental to all of economics is:

• A) there are limited wants.
• B) we are a rich country but are simply not aware of it.
• C) people have unlimited wants facing limited means to satisfy them.
• D) there are unlimited resources.

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Definitions:

Money Multiplier

The ratio of the increase in total money supply generated from an initial deposit in a banking system.

Compliance

The act of conforming to or following rules, regulations, standards, or laws.

Reserves

Funds or assets set aside to meet future liabilities, unexpected costs, or potential financial obligations.

Reserve Requirement

The minimum amount of reserves a bank must hold against deposits, set by central banks to ensure bank liquidity and stability.