Exhibit 12-2 Lorenz curve
As shown in Exhibit 12-2, the perfect equality line is drawn between points:

If there is no one who is interested in borrowing from a bank:

a. the bank's excess reserves will be zero. b. there will be no process of money creation. c. the required reserve ratio must be equal to zero. d. the required reserve ratio must be equal to 100 percent.

Creating conditions for fair trade by limiting imports will make the domestic consumers better off as they will be required to pay low prices for the products

a. True b. False Indicate whether the statement is true or false