Interest is paid to

A) all holders of stock.
B) individuals who own gold.
C) owners of capital.
D) borrowers of funds.

Answer: C

Economics

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Suppose a bank has $10,000 in deposits and $1,000 in reserves. The required reserve ratio is 5%. Which of the following occurs if the required reserve ratio is increased to 10%?

A) The bank's required reserves will decrease to $500. B) The bank's excess reserves will increase to $1,000. C) The bank's required reserves will increase to $1,000. D) The bank's ability to create loans increases by 5%.

Economics

Over the past 70 years in the United States, employment in service-producing industries had increased significantly and employment in goods-producing industries has declined significantly. Economists would refer to this process as

A) the classical dichotomy. B) production parity. C) demographic imbalance. D) sectoral shifts.

Economics