One way to avoid the free rider problem is
A) through mandates.
B) for the government to provide the good or service.
C) to use social pressure.
D) All of the above.
D
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Holding the money deposits of businesses and households and making loans to the public are the basic functions of
A. the Federal Deposit Insurance Corporation and the Federal Savings and Loan Insurance Corporation. B. district banks of the Federal Reserve System. C. the Open Market Committee and the Board of Governors. D. commercial banks and thrift institutions.
A major reason for creating the European Monetary System was to
A) create a single currency. B) unify banking laws and permit cross-border investment. C) avoid competitive devaluations. D) reduce the costs of changing currencies. E) eliminate the need for central banks.
According to the efficient markets hypothesis,
A) common stock prices should be constant. B) the price of a corporation's stock is likely to fluctuate substantially in response to news about changes in the company's short-term prospects. C) the price of a corporation's stock will fluctuate significantly only in response to news about changes in the company's long-term prospects. D) price fluctuations in common stock are a response to fads and are only infrequently the result of changes in the expected profitability of the companies involved.
The increase in tax on state bank notes from 2 to 10 percent provided state banks incentive to
(a) attract more demand deposits and increase the use of checks. (b) increase the amount of state notes and use them to extend bank credit. (c) increase the minting of coins and use them for exchange and lending purposes. (d) all of the above.