Answer: A) Under emissions trading programs, pollution levels will not fall sufficiently for optimal abatement.
Explanation:
First conceived in the seventies to fight acid rain and now useful in the battle against climate change, emissions trading is a program targeted at reducing emission by companies.
Under this scheme, every company that produces emissions will need to hold a permit for a limited amount. If they produce more than their stated limit, they would need to buy from other permit holders who produce lower emissions.
While this program can set a limit of total emissions, it will not succeed in reducing pollution levels below this limit.
Answer:
The correct answers are (A) and (C)
Explanation:
When a commercial bank is required to hold more money in reserve, this is usually a government or central bank policy (contractionary monetary policy) to reduce the amount of money in circulation.
The bank will then have less money to loan out and also less money to pay interest on loans. This gives the answers (A) and (C).
As for (B) and (D), cash-reserve ratio does not affect the basic flow of money in bank operations and a bank can't have less money for its customers to withdraw just because they are required to hold more money in their reserve. Every saver or customer remains entitled to all the money he saves in the bank.
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