Which of the Following Would Be Expected to Increase the Demand

question 95

Multiple Choice

Which of the following would be expected to increase the demand for U.S. currency?

• A) Competition among brokers forces down the commission charge for selling bonds or stocks.
• B) The economy enters a recession.
• C) Political instability increases dramatically in developing nations.
• D) On-line banking allows customers to transfer funds between checking and stock mutual funds 24 hours a day.

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Definitions:

Economic Problem

The fundamental challenge of efficiently allocating limited resources to satisfy unlimited wants and needs.

Limited Resources

The finite availability of resources, such as land, labor, and capital, which can restrict economic growth and development.

Unlimited Wants

The economic concept that humans have an endless number of desires for goods and services, even if resources for fulfilling those desires are limited.

Entrepreneurship

The act of starting and managing a business venture, along with any of its risks, in order to make a profit and innovate in the market.