Deflation

question 204

Multiple Choice

Deflation

• A) is a typical economic event in the U.S. economy.
• B) is scheduled by the nation's economists to make economic corrections.
• C) occurs only in command economies.
• D) is a general decrease in the level of prices.
• E) is characteristic of a mixed economy.

Recognize the measures implemented to deter bank panics.

Understand the principles of fractional reserve banking.

Acknowledge the purposes of various monetary demands.

Interpret the significance of federal deposit insurance.

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Definitions:

Voting Common Stock

Shares in a corporation that grant the holder the right to vote on corporate matters, typically relating to the election of the board of directors.

Goodwill

The value attributed to a company's brand name, customer relationships, employee relations, and other intangible assets during an acquisition, over and above the tangible assets' value.

Voting Common Stock

Equity securities that give shareholders the right to vote on corporate matters.