According to What Rule Does the Government Have a Monopoly

question 35

Multiple Choice

According to what rule does the government have a monopoly on the use of force; so when you use force,you're "taking the law into your own hands"?

• A) the rule of law
• B) the rule of self-defense
• C) the rule of justification
• D) the rule of mitigation

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Definitions:

Excess Reserves

The excess funds that a bank or financial institution maintains beyond the minimum mandated by regulatory bodies, creditors, or its own internal policies.

Money Supply

The total amount of money—cash, coins, and balances in bank accounts—in circulation within a country's economy at a specific time.

Required Reserve Ratio

The fraction of deposits that banks are required to keep on hand and not lend out, as set by the central bank.

Discount Rate

The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility.