Author Question: Which of the following factors would be most likely to encourage investment and capital formation in ... (Read 59 times)

rachel9 · **on:** Jun 30, 2018

Which of the following factors would be most likely to encourage investment and capital formation in a less-developed nation?
a. High and variable rates of inflation.
b. Tariffs and quotas that restrict international trade.
c. A legal system that provides for secure property rights and evenhanded enforcement of contracts.
d. High marginal tax rates.

Question 2

A bank has 100 million of checkable deposits, 6 million of required reserves, and 2 million of excess reserves. What is the required reserve ratio?
a. 2 percent.
b. 3 percent.
c. 6 percent.
d. 12 percent.