If You Go into a Bank Which Faces a 10

question 26

Multiple Choice

If you go into a bank which faces a 10% required reserve ratio and borrow $1,000, the bank will ____ in your checking account at the bank.

• A)add $1,000
• B)subtract $1,000
• C)add $5,000
• D)subtract $5,000

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Definitions:

Market Share

The percentage of an industry's total sales that is earned by a particular company over a specific time period.

Market Concentration

The degree to which a small number of firms control a large percentage of a relevant market.

Competition

The rivalry among businesses or individuals for dominance or a greater share of the market or attention, often leading to innovation and better choices for consumers.

Monopolist

An individual or entity that holds a dominant position or exclusive control over a market or supply of a particular commodity or service.