Which of the Following Is a Characteristic of Industrial Demand

question 25

Multiple Choice

Which of the following is a characteristic of industrial demand?

• A)derived demand
• B)elastic demand
• C)stable demand
• D)concentrated demand

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Definitions:

Excess Reserves

Banks' reserves that exceed the minimum required by the central bank, available for lending or investment.

Interest Rate

The price, expressed as a percentage of the principal, that a borrower must pay a lender for the use of funds.

Excess Reserves

are bank reserves held in excess of what is required by the central bank, which can be lent out to earn interest.

Money Expansion Process

The increase in the total amount of money in circulation or in the money supply, facilitated by mechanisms such as lower interest rates or quantitative easing.