Normally, the Federal Deposit Insurance Corporation would shut down a bank when:
A) assets of the bank equal the liabilities of the bank.
B) assets of the bank exceed the liabilities of the bank.
C) liabilities of the bank exceed the assets of the bank.
D) stockholders' equity is greater than zero.
C
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Suppose a market is currently served by an incumbent firm. If a potential entrant can enter prior to the incumbent firm announcing its output (or price), the incumbent cannot deter entry through its actions.
Answer the following statement true (T) or false (F)
One of the series included among the lagging indicators is
A) the change in sensitive material prices. B) the index of industrial production. C) employees on non-agricultural payrolls. D) average duration of unemployment.
Classical theory advocates _____________ policy and Keynesian theory advocates ______________ policy
a. nonintervention; intervention b. active; nonstabilization c. stabilization; fixed wage d. fixed rule; passive
Oil is a key input to the U.S. economy. Describe scenarios in which oil could be involved in each of the following types of shifts: a rightward shift in the short-run aggregate supply (SRAS) curve, a leftward shift in the SRAS curve, a rightward shift in the long-run aggregate supply (LRAS) curve, and a leftward shift in the LRAS.
What will be an ideal response?