Socialism Is Correctly Described by Which of the Following Statements

question 28

Multiple Choice

Socialism is correctly described by which of the following statements?

• A) Central planning is used exclusively to answer the basic economic questions.
• B) Markets are used exclusively to answer the basic economic questions.
• C) Tradition is used exclusively to answer the basic economic questions.
• D) Government ownership of many resources and centralized decision-making answers the basic economic questions.

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Definitions:

Federal Reserve District Bank

One of the 12 regional banks in the Federal Reserve System of the United States, each responsible for implementing the country's monetary policy within its specific district.

Reserve

A portion of funds or resources set aside for specific future use, often related to monetary or commodity resources within financial institutions or government reserves.

Excessive Reserves

Funds held by banks over and above the legal reserve requirement, not required but possibly maintained for additional safety or for other purposes.

Required Reserves

Required Reserves are the portion of depositors' balances that banks must have on hand as cash, according to central bank regulations.