The Table Given Below Reports the Quantity Demanded and Supplied

question 66

Multiple Choice

The table given below reports the quantity demanded and supplied of a commodity at different prices in a market.Table 3.5

-Which of the following is not an example of a price ceiling?

• A)The Chinese government sets the price of housing in China below equilibrium.
• B)The government of the former Soviet Union sets the price on food below those prevailing in the free market.
• C)In the 1970s, the Nixon administration imposed wage and price controls, thereby keeping wages and prices from rising.
• D)In the late 1970s, the U.S. government required gasoline to be sold at a price per gallon that was below what would have prevailed in a free market.
• E)The U.S. government requires that sugar be sold at a price that exceeds the world price of sugar.

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Definitions:

Required Reserve Ratio

The percentage of deposits that banks are legally required to keep on hand as reserves, not loaned out.

Excess Reserves

Excess reserves are the capital reserves held by banks beyond the required minimum, often placed with central banks, earning interest.

Money Supply

The total amount of monetary assets available in an economy at a specific time, which includes cash, coins, and balances held in checking and savings accounts.

Time Deposits

Time deposits are bank deposits with a fixed term or maturity date, where the depositor agrees not to withdraw the funds until that date, typically earning a higher rate of interest.