In US V Trenton Potteries Co

question 431

Multiple Choice

In U.S. v. Trenton Potteries Co., competitors openly fixed prices and restrained sales. The Supreme Court held that:

• A) Section 2 of the Clayton Act was unconstitutional
• B) price fixing is per se illegal
• C) cartels that serve to lower consumer prices may be legal
• D) as a potters association they were exempt from the antitrust laws
• E) horizontal groupings that do not involve mergers are not illegal

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Definitions:

New Loans

Financial amounts borrowed by individuals, businesses, or governments, typically from banks or financial institutions, that have not previously existed in the market.

Required Reserve Ratio

The fraction of deposits that banks are mandated by the central bank to keep on hand as reserves, rather than loaning out.

Total Reserves

The sum of a bank's deposits held at the central bank and the cash held in vaults.

Checkable Deposits

Refers to deposits in bank accounts from which individuals can write checks or use debit cards to make purchases directly.