Under a fractional-reserve banking system, banks
a. hold more reserves than deposits.
b. generally lend out a majority of the funds deposited.
c. cause the money supply to fall by lending out reserves.
d. All of the above are correct.
b
Economics
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There is no role for government in a market capitalist economy.
a. true b. false
Economics
Subsidies for silver, the Bland-Allison Act of 1878, and the Silver Purchase Acts of 1890 and 1933 all provide examples of government programs
(a) based on careful analysis of benefits relative to costs. (b) designed to redistribute income from the rich to the poor. (c) that reflect the political attractiveness of special-interest issues. (d) that promote the general welfare.
Economics