There exist only two causes of monopoly: barriers to entry and government restrictions

Regarding new inventions, which of the following statements is not true?

a. a new invention typically has little competition b. this effective monopoly on the market earns the inventor abundant profit c. that profit gets the attention of other potential inventors, who create competing products d. reduced to zero economic profits, the inventor goes out of business

Many banks offer accounts featuring “Automatic Transfer from Savings” allowing customers to overdraw checking accounts and the bank will transfer enough funds to cover the check automatically. Most likely, what is the effect of this feature on velocity?

A. Velocity will decrease. B. Velocity will increase. C. Velocity will remain constant. D. Velocity is unrelated to saving accounts.