A "Specific" Factor of Production Is

question 30

Multiple Choice

A "specific" factor of production is:

• A) critical to the production of the good or service.
• B) not transferable to other types of production and can only be used for the product in question.
• C) a set quantity for each unit produced.
• D) the opposite of a general factor, meaning it must fit within certain narrow quality parameters.

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Definitions:

Vault Cash

The physical currency a bank holds in its vault as part of its required reserves or for daily operations.

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.