FIGURE 6- 2 -Refer to Figure 6- 2. If the Price of X

question 17

Multiple Choice

FIGURE 6- 2
-Refer to Figure 6- 2. If the price of X is $2 and the price of Y is $1 and the consumer is buying 4 units of X and 2 units of Y, the consumer's total spending is

• A) $6.
• B) $8.
• C) $10.
• D) $12.
• E) $15.

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Definitions:

Borrow

The act of getting something from someone with the intention of returning it or its equivalent.

Reserves

Funds or assets set aside by individuals, institutions, or governments to meet future liabilities, emergencies, or regulatory requirements.

Reserve Ratio

A requirement set by central banks determining the minimum amount of reserves a bank must hold against deposits, influencing the bank's capacity to lend and create money.

Required Reserves

The minimum amount of funds that a bank or financial institution must hold in reserve, as mandated by a central bank or regulatory authority, to ensure financial stability and liquidity.