If There Is No One Who Is Interested in Borrowing

question 92

Multiple Choice

If there is no one who is interested in borrowing from a bank:

• A) the bank's excess reserves will be zero.
• B) there will be no process of money creation.
• C) the required reserve ratio must be equal to zero.
• D) the required reserve ratio must be equal to 100 percent.

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Definitions:

Total Revenue

The total income received by a company from its sales of goods or services, without any deductions.

Cost Curves

Graphical representations showing how the cost to produce a given level of output changes with the amount of output.

Price-Taker Industry

An industry in which individual companies have no control over the market price of their product; they must "take" the market price as given.

Per-Unit Cost

The cost associated with producing or acquiring one unit of a product or service, calculated by dividing the total cost by the number of units.