Implicit Costs Are ________ and Explicit Costs Are ________

question 4

Multiple Choice

Implicit costs are ________ and explicit costs are ________.

• A)nonmonetary costs; also nonmonetary costs
• B)nonmonetary costs; costs that involve spending money
• C)costs that involve spending money; nonmonetary costs
• D)costs that involve spending money; also costs that involve spending money

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Definitions:

Required Reserve Ratio

The fraction of deposits that regulators require a bank to hold in reserve and not lend out.

Reserves

Funds or material set aside or saved for future use, often used in the context of central banking as currency holdings or commodities like gold.

Government Bonds

Government Bonds are securities issued by governments to borrow money from investors, promising to pay back the principal amount with interest on specified dates.

Money Supply

The overall total of financial resources found in an economy at a given instance.