Fractional reserve banking originated
A) when the United States Congress passed a law regarding the required reserve ratio.
B) when goldsmiths realized they could issue warehouse receipts beyond gold on deposits.
C) with the establishment of the Federal Reserve System.
D) in the United States with the Clayton Act.
B
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Some say the ECB draws too heavily on the German model. What is its major focus?
A) reliance on the ability of the European parliament to engage in fiscal policy when necessary B) the notion that the economy needs monetary stimulus to weather frequent recessions C) that the unemployment problem, especially in Eastern Europe, should take priority over price stability D) that price stability (low inflation) is the primary policy goal, separated from political influence or having to address regional economic slowdowns
The economic inefficiency of a monopolist can be measured by the
a. number of consumers who are unable to purchase the product because of its high price. b. excess profit generated by monopoly firms. c. poor quality of service offered by monopoly firms. d. deadweight loss.