The               the Reserve Requirement

question 49

Multiple Choice

The               the reserve requirement ratio, the               the ultimate effect of any initial increase in the money supply.

• A)lower; less
• B)lower; greater
• C)greater; less
• D)lower; greater AND greater; less

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Definitions:

Human Reason

The capacity of the human mind to analyze situations, make judgments, and solve problems.

Socialism

An economic institution characterized by state ownership and management of the basic industries.

Capitalism

An economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and distribution of goods determined primarily by competition in a free market.

Private Property

Property owned by individuals or companies, not by the state or public entities, and protected by law; includes both tangible and intangible assets.