Which of the Following Best Describes China During the First

question 18

Multiple Choice

Which of the following best describes China during the first millennium BCE?

• A)China's system varied between an empire, with a single dominant leader, and a pluralistic system.
• B)China was controlled by a monarchy.
• C)China was divided into a pluralistic system similar to the Westphalian system.
• D)China was always controlled by outsiders.

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Definitions:

Required Reserve Ratio

The fraction of deposits that banks are obligated to hold in reserve, either in their vaults or at the central bank, and not loan out.

Excess Reserves

The funds that banks hold over and above the required reserve ratio set by the central bank.

Money Supply

The overall sum of financial resources present in an economy at a given moment.

Open Market Operations

are actions taken by central banks to buy or sell government securities in the open market to control the money supply and influence interest rates.