Which of the Following Would Cause an Increase in GDP

question 167

Multiple Choice

Which of the following would cause an increase in GDP?

• A) a higher discount rate
• B) an open market purchase
• C) an open market sale
• D) a higher required reserve ratio

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Definitions:

Flood Insurance

A specific insurance coverage against property loss from flooding, typically required for buildings in designated flood-prone zones.

Pooling Of Risk

The practice of spreading financial risks among a large number of participants, thereby minimizing the overall impact to any single participant.

Diversification

The strategy of investing in a variety of securities in order to lower the risk involved with putting money into few investments.

Flood Insurance Premiums

The payments made periodically to an insurance company in exchange for coverage against loss or damage caused by flooding.