Under a gold standard, as trade takes place and the foreign exchange market is affected, ______ tend(s) to restore equilibrium.
A) a change in the interest rate
B) gold flows between nations
C) currency flows
D) changes in the value of gold
Ans: B) gold flows between nations
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The purpose of the Basel Committee was to
A) achieve a better coordination of the surveillance exercised by national authorities over the international banking system. B) achieve a better coordination of domestic banking systems. C) achieve a better coordination between brokers and investment bankers. D) achieve a better coordination between bond holder and bon issuers. E) manipulate bank rates for more leverage profits.
An autonomous easing of monetary policy results in a ________ level of equilibrium output, shifting the aggregate demand curve to the ________
A) higher; right B) lower; right C) higher; left D) lower; left
That several hundred S&Ls were not even examined once in the period January 1984 through June 1986 can be explained by
A) Congress's unwillingness to allocate the necessary funds to thrift regulators. B) regulators' reluctance to find the specific problem thrifts that they knew existed. C) slower growth in lending meant that less regulation was needed. D) Congress's unwillingness to listen to campaign contributors.
Which of the following will make the real-world money multiplier smaller than the theoretical formula?
a. Banks actually hold fewer reserves than technically required by the Fed. b. Banks actually make loans for more money than they have in excess reserves. c. Banks may keep some excess reserves rather than loan it all out. d. Both a. and b. above are correct.