If the Monetary Authorities Want to Reduce Chartered Bank Lending

question 50

Multiple Choice

If the monetary authorities want to reduce chartered bank lending they should:

• A)take actions to reduce chartered bank reserves.
• B)take actions to increase chartered bank reserves.
• C)ask the chartered banks to lower the desired reserve ratio.
• D)do none of the above.

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Definitions:

Additive Manufacturing

A process of creating three-dimensional objects by adding layer upon layer of material, commonly referred to as 3D printing.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, resulting in cost per unit of output decreasing with increasing scale.

3-D Printers

Technology that creates three-dimensional objects from digital models by layering materials.

Explicit Costs

The direct payment costs to others in the course of running a business or undertaking an economic transaction.