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RESOURCE MARKET: A market used to exchange the services of resources labor, capital, and natural resources. The value of services exchanged through resource markets each year is measured as national income. Compare financial market, product market.
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Lesson 18: Banking | Unit 3: Reserve Banking
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Page: 16 of 24
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Topic:
Goldsmith Reserves
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Knights make gold deposits, others withdraw gold, merchants seek investment loans, and others repay loans. Fred must keep sufficient gold to satisfy any withdrawal. Required reserves: - Fred concludes that he needs no more than 10 pounds of gold to back each 100 pounds of gold deposits.
- He doesn't need to keep 100% of the deposits in reserves.
Fred has discovered modern fractional-reserve banking. Excess Reserves: - Fred uses the other 90% for the loans which earn interest and make his business a profitable one.
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INEFFICIENT The state of resource allocation that exists when the highest level of consumer satisfaction is not achieved from available resources. This state occurs in market exchanges if the price buyers are willing and able to pay for a good does not reflect the satisfaction everyone obtains from the consuming the good or if the price sellers need to charge for a good does not reflect all opportunity cost of producing the good.
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WHITE GULLIBON
[What's This?]
Today, you are likely to spend a great deal of time at a crowded estate auction seeking to buy either a printer that works with your stockpile of ink cartridges or income tax software. Be on the lookout for pencil sharpeners with an attitude.
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This isn't me! What am I?
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In the late 1800s and early 1900s, almost 2 million children were employed as factory workers.
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"Nothing will ever be attempted if all possible objections must first be overcome. " -- Samuel Johnson, essayist, critic, lexicographer
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SPSS
Statistical Product and Service Solutions, Statistical Package for the Social Sciences (software)
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