Which of the Following Is Correct

question 164

Multiple Choice

Which of the following is correct?

• A) An increase in the number of students choosing to major in marketing would likely lead to an increase in the wage earned by marketing graduates.
• B) A new law allowing nurses to offer patients some of the medical services that are currently only available through doctors would increase the wage rate earned by doctors.
• C) An increase in the demand for newly constructed homes would lead to a reduction in the price of lumber.
• D) New licensing requirements that substantially lowered the number of plumbers would likely lead to an increase in the wage rate of plumbers.

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Definitions:

Reserve Requirement

The minimum amount of reserves a bank must hold against deposits, set by central banks to ensure bank liquidity and stability.

Deposits

Funds placed in a bank account that can be withdrawn by the account holder, typically used for safekeeping or to earn interest.

Money Supply

The total amount of money in circulation or in existence within a country, including cash and deposits.

Reserve Requirement

The minimum amount of funds that a bank must hold in reserve against deposits made by customers.