All of the Following Would Be True for the Banking

question 71

Multiple Choice

All of the following would be true for the banking system if there was no government regulation except

• A)The money supply would be determined by individual banks.
• B)Depositors would bear all the risks of bank failures.
• C)The money supply would be subject to abrupt changes.
• D)The banking system would be regulated by consumers.

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Definitions:

Tariff Revenue

Tariff Revenue is the income generated from duties imposed by a government on imported goods, which is often used as a tool for economic policy.

International Specialization

The economic strategy of a country focusing its resources on producing goods and services it can produce most efficiently for exchange with others.

World Price

The international market price of a good or service, influenced by global supply and demand.

Diseconomies Of Scale

refers to a situation where, as a company or business expands, its production costs increase, leading to a decrease in efficiency.