Use the Accompanying Table to Answer the Following Questions

question 178

Multiple Choice

Use the accompanying table to answer the following questions:
Table 3-6

-Refer to Table 3-6.The opportunity cost of 1 unit of bread in England is

• A)4 units of cheese.
• B)2 units of cheese.
• C)1 unit of cheese.
• D)1/2 unit of cheese.

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Definitions:

Excess Reserves

Banking reserves exceeding the reserve requirement set by a central bank, not lent out to the bank's clients.

Interest Rate

The fee, shown as a percent of the original amount, that a borrower must pay to a lender to borrow money or other resources.

Sub-prime Housing Loan

A type of loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans, often due to a poor credit history.

Prime Rate

The Prime Rate is the interest rate that commercial banks charge their most credit-worthy customers, often used as a benchmark in setting rates for various types of loans.