Which One of the Following Is an Expenditure Flow from Households

question 111

Multiple Choice

Which one of the following is an expenditure flow from households to firms?

• A)goods and services
• B)factor services
• C)payments for goods and services
• D)payments for factor services
• E)loans

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Definitions:

Reserve Ratio

The Reserve Ratio is the fraction of total deposits that a bank is required to hold in reserve and not lend out, a critical tool in monetary policy used to control the money supply.

Deposit Expansion Multiplier

A ratio that measures the maximum amount of money a bank can create with a given level of reserves.

Currency

A system of money in general use in a particular country or economic context.

Issued

Pertains to the act of officially distributing or releasing something, such as securities or legal documents.