Answer:
Question one is D I believe. Question two is B.
Answer:
B: Germany was unable to repay its war debts when loans from the United States were no longer available.
Explanation:
I also had this question and this was correct.
1. What is the difference between currency and the money supply?
Currency is the type of money being used (for example the Japanese Yen or the American Dollar). While money supply is the amount of money in an economy and the money being used.
2. How do banks make profits?
They make profits by giving loans and them collecting with interest.
3. Why might you want a loan to start a business?
One might want a loan to start a business because not every person has large amounts of money to start and maintain a business, so many will go to a bank to start-up.
4. What is the Federal Reserve?
The Federal Reserve is the central banking system of the United States.
Answer:
Opportunity cost is what is given up to obtain something, or the cost of doing something instead of another thing.
The opportunity cost of leisure would be best explained as the monetary value of time spent not working, or in other words, the income that is not received when you are not working.
For example, if a person works 8 hours a day, five days a week, making $20/hour, he will earn, by the end of the week, a total of $800 dollars. However, if he decides to cut back his hours in order to go to swimming classes in the afternoon, and now works 6 hours a day, five days a week, he will now make $600 dollars, so the opportunity cost of leisure for him is $200 dollars.
