In the Equivalence Principle

question 44

Multiple Choice

In the equivalence principle,

• A) all forces are equivalent.
• B) acceleration is equivalent to force.
• C) all velocities are equivalent.
• D) velocity is equivalent to the gravitational force.
• E) acceleration is equivalent to the gravitational force.

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Definitions:

Reserve Requirement

The minimum amount of reserves that banks must hold against deposits, set by central banks to control the money supply.

T-Account

A T-account is a visual representation of a ledger account, used in accounting to show the effects of transactions on an account balance.

Excess Reserves

Funds that banks hold over and above the legal reserve requirements set by central banking authorities.

Reserve Requirement

This is a monetary policy tool used by central banks, specifying the minimum amount of reserves a bank must hold against its deposits. It influences how much money a bank can lend and thus helps control money supply and inflation.