Three banks are operating in a town under a statewide system of free banking. Bank A has $50 of Bank B’s currency. B has $40 of Bank C’s currency. And C has $30 of Bank A. a. Provide an order of reconciliation under bilateral trade requires the greatest amount of reserves? Show this result. b. Provide an order of reconciliation under bilateral trade requires the least amount of reserves? Show this result. c. Show how multilateral reconciliation through a clearinghouse will economize on reserves.

The interaction of individual choices because a type of fish is on the verge of extinction, the government imposes rules that prohibit fishing in the publicly owned spawning grounds. at first owners of fshing bouts complain about this restriction on where they can fish, but soon they notice that the number of adult fish swimming outside the protected area is much higher than it was before. with the restriction, each fishing boat ends up catching more fish than it did before the r which of the following principles of economic interaction best describes this scenario? o there is a tradeoff between equality and efficiency o markets usually lead to efficiency. o when markets do not achieve efficiency,government intervention can improve overall welfare o markets allocate goodseffectively