The quantity of reserves held by a bank in addition to the legally required amounts is known as:

The quantity of reserves held by a bank in addition to the legally required amounts is known as:
 a. actual reserves.
  b. excess reserves.
  c. the required reserve ratio.
  d. the money multiplier.
  e. the monetary base.

QUESTION 2

Which of the following can be a barrier to an LDC's economic growth and development?
 a. Low population growth. b. A low level of human capital.
  c. Faster capital accumulation. d. More infrastructure.

QUESTION 3

The adjustment of nominal incomes to changes in the price level (CPI) is fixed because of the:
 a. volatility of investment spending.
 b. existence of long-term contracts.
 c. complete information possessed by workers.
  d. all of the above.

QUESTION 4

Domestic law and order, the infrastructure, and the climate of international trade are all aspects of a country's:
 a. natural resources endowment. b. human resources investment.
  c. capital investment. d. political environment.

QUESTION 5

The percentage of checkable deposits that banks and other financial intermediaries are required to keep in cash reserves is known as:
 a. the fractional reserve requirement.
  b. the excess reserve requirement.
  c. the required reserve ratio.
  d. the discount rate.
  e. M1.

QUESTION 6

In the short run, a price increase in the goods and services market measured by the CPI will:
 a. increase the purchasing power of money.
 b. improve producer profits and, thereby, induce suppliers to expand output.
  c. increase resource prices, lower profits, and lead to a decline in output.
  d. reduce the natural rate of unemployment.

QUESTION 7

Economic growth and development in LDCs are low because many of them lack:
 a. saving.
  b. infrastructure.
  c. a political environment favorable to growth.
  d. All of these.