Most Modern Banking Systems Are Based on

question 25

Multiple Choice

Most modern banking systems are based on

• A) money of intrinsic value.
• B) commodity money.
• C) 100 percent reserves.
• D) fractional reserves.

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Definitions:

Slightly Regressive

Refers to a tax system or policy that places a relatively higher tax burden on low-income earners compared to high-income earners, but the difference is not pronounced.

Excise Tax

A tax directly levied on specific goods or services, such as tobacco or gasoline, usually to discourage their use or generate revenue.

Highly Inelastic

A situation where the demand or supply for a good or service is insensitive to changes in its price.

Highly Elastic

Describes a situation where the supply or demand for a product or service changes significantly in response to changes in price.