The 1920s were characterized by large numbers of bank failures each year, especially among country banks. Country banks were particularly inclined to fail because:
a. they tended to open too many branches.
b. they were not allowed to issue checking accounts.
c. they were not allowed to join the Federal Reserve system.
d. farm mortgages constituted the major portion of their loans.
e. All of the above.
d. farm mortgages constituted the major portion of their loans.
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The U.S. banking system is considered to be a dual system because
A) banks offer both checking and savings accounts. B) it actually includes both banks and thrift institutions. C) it is regulated by both state and federal governments. D) it was established before the Civil War, requiring separate regulatory bodies for the North and South.
Which of the following explains why long-run average total cost at first decreases as output increases?
a. diseconomies of scale b. less efficient use of lumpy inputs c. fixed costs become spread out over more units of output d. gains from specialization of inputs e. marginal costs rise at a slower rate than average costs in the short run
In the open-economy macroeconomic model, the supply of loanable funds comes from
a. national saving. Demand comes from only domestic investment. b. national saving. Demand comes from domestic investment and net capital outflow. c. Only net capital outflow. Demand for loanable funds comes from national saving. d. domestic investment and net capital outflow. Demand for loanable funds comes from national saving.
The net value of the flow of goods, services, income, and gifts is the current account balance.
Answer the following statement true (T) or false (F)