Use the Following to Answer Questions

question 401

Multiple Choice

Use the following to answer questions:
Suppose that the public holds 50% of the money supply in currency and the reserve requirement is 20%.Banks hold no excess reserves.A customer deposits $6000 in her chequable deposit.
-(Scenario: Holding Cash) Refer to Scenario: Holding Cash.Assume that after receiving the deposit,the bank lends out its excess reserves.When the loan is spent,_____ of the loan will be a chequable deposit and _____ will be held by the public as cash.

• A) $6000;$0
• B) $4800;$1200
• C) $2400;$2400
• D) $3000;$3000

Understand the importance of adopting existing technology for the development of developing countries.

Recognize the role of human capital investment in the development process of newly industrialized economies.

Comprehend the economic and social indicators reflecting stages of development among countries.

Identify strategies for developing countries to close the developmental gap with developed countries.

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Definitions:

MC Of Reducing

The marginal cost associated with reducing an output or activity, usually referring to cutting down on production or operational processes.

Marginal Social Benefit

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

Marginal Social Cost

The extra expense borne by the entire society resulting from the manufacture of an additional unit of a product or service.

Trade Permits

Legal documents or licenses required to engage in certain types of trade or business, often used to regulate or protect industries.