Water-Based Transportation for Trade and Communication in Italy Was Discouraged

question 39

Multiple Choice

Water-based transportation for trade and communication in Italy was discouraged by

• A)few good harbors and dry summers that produced little water for rivers.
• B)a failure to master the skill of shipbuilding.
• C)a poor agricultural environment able to produce few export commodities.
• D)frequent invasions from the north that cut off river routes.

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Definitions:

Monetary Policy

Central bank policies aimed at influencing economic activities through controlling interest rates and supply of money.

Reserve Requirement

The Reserve Requirement is a central banking regulation that sets the minimum amount of reserves each bank must hold as a proportion of its deposits, a tool used to control the money supply.

Open Market Operations

Activities by a central bank to buy or sell government securities in the open market to influence the money supply and interest rates.

Reserve Requirement

A regulation set by central banks that specifies the minimum amount of reserves a bank must hold in relation to customer deposits.