The term reserve requirement refers to the proportion of its deposits that a bank is legally required to deposit with the central bank

Which of the following best illustrates the medium of exchange function of money?

a. You keep some money hidden in your shoe. b. You keep track of the value of your assets in terms of currency. c. You pay for your oil change using currency. d. None of the above is correct.

Which of the following would be considered an implicit cost of operating a business?

A) shipping expenses B) Social Security contributions for employees C) the resale value of delivery vans the company owns and uses for its deliveries D) interest payments on a loan