Governmental Power in a Democracy Is Limited By

question 18

Multiple Choice

Governmental power in a democracy is limited by:

• A)The accountability of the elected representatives to the general public
• B)Individual freedom-such as freedom of expression and assembly
• C)The police force which is independent of the state
• D)Limiting the number of terms for which a representative may be elected

---

Definitions:

Recessionary Gap

The difference between the real GDP and the potential GDP of an economy, indicating a situation where resources are underutilized.

Monetary Policies

Actions undertaken by a central bank, currency board, or other regulatory committees to control the supply of money and achieve economic goals such as controlling inflation or encouraging economic growth.

Reserve Requirements

Regulations set by central banks determining the minimum amount of reserves a bank must hold against deposits, used as a tool for controlling the money supply.

Government Securities

Financial instruments issued by a government to borrow money, often considered low-risk investments.