Someone Who Is Risk Preferring Has

question 28

Multiple Choice

Someone who is risk preferring has

• A)diminishing marginal utility of wealth.
• B)constant marginal utility of wealth.
• C)increasing marginal utility of wealth.
• D)less marginal utility of wealth than someone who is risk neutral.

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Definitions:

Required Reserve Ratio

The fraction of deposits that a bank is required by regulation to hold in reserve and not lend out, aiming to ensure bank liquidity and stability.

Money Supply

The total amount of monetary assets available in an economy at any specific time, including cash, coins, and balances held in checking and savings accounts.

Required Reserve Ratio

is the fraction of deposits that banks are required to keep on hand as reserves, rather than loaning them out.

Money Supply

The total amount of money available in an economy, including cash, coins, and balances held in checking and savings accounts.