Examlex

Solved

Ricardo's Theory of Comparative Advantage Is a Static Theory That

question 90

True/False

Ricardo's theory of comparative advantage is a static theory that does not consider changes in international competitiveness over the long run.


Definitions:

Excess Reserves

The funds that banks hold over and above the legal requirement set by a central bank or banking regulator.

Commercial Bank

A firm that engages in the business of banking, accepting deposits, offering checking accounts, and making loans.

Deposit Expansion Multiplier

A ratio that measures the potential increase in money supply from an initial deposit through the banking system's ability to lend and create money.

Reserve Requirement

The minimum amount of reserves a bank must hold against its deposits, as mandated by monetary authorities, to ensure banking stability.

Related Questions