Figure 5-4 -Refer to Figure 5-4.The Section of the Demand Curve at Demand

question 96

Multiple Choice

Figure 5-4
-Refer to Figure 5-4.The section of the demand curve at point B represents the

• A)elastic section of the demand curve.
• B)inelastic section of the demand curve.
• C)unit elastic section of the demand curve.
• D)perfectly elastic section of the demand curve.

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Definitions:

Elastic Currency

A currency system that can expand or contract in supply to accommodate economic needs and stabilize the economy.

Secondary Reserves

Liquid assets held by financial institutions that are not used for primary obligations but can be quickly converted to cash for emergency needs.

U.S. Government Securities

Financial instruments issued by the United States Department of the Treasury to finance federal government's expenditures.

Vault Cash

Currency and coins held by a bank in its vault and used to satisfy the bank's reserve requirements.