Which of the Following Statements Is True

question 47

Multiple Choice

Which of the following statements is true?

• A)Economically speaking, contingent assets and liabilities are contractual claims that might or might not impact on the economic value of a bank.
• B)Economically speaking, contingent assets and liabilities are contractual claims that do not impact on the economic value of a bank.
• C)Economically speaking, contingent assets and liabilities are contractual claims that directly impact on the economic value of a bank.
• D)Economically speaking, contingent assets and liabilities are contractual claims that indirectly impact on the economic value of a bank.

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Definitions:

Marginal Social Benefit

The additional benefit to society from consuming or producing one more unit of a good or service.

Marginal Social Cost

Marginal social cost is the total cost to society of producing one additional unit of a good or service, including both private costs and any externalities.

Common Resources

Resources that are accessible to all members of a society but are limited in availability and can be depleted by overuse.

Private Markets

Markets where transactions occur between private entities without significant government intervention, focusing on the exchange of goods and services among individuals and businesses.