Which of the following represents a preventative measure against bank runs?
A) The President of the United States can order banks to pay depositors.
B) The Federal Reserve can lower reserve requirements to ensure that banks have sufficient funds.
C) The FDIC provides deposit insurance.
D) None of the above is correct.
Answer: A) The President of the United States can order banks to pay depositors.
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Direct finance refers to the flow of funds from savers to borrowers through financial markets
Indicate whether the statement is true or false
How many people still live on less than the equivalent of $1.25 per day (new definition of "extreme poverty")?
a. 100 million. b. 500 million. c. 1.4 billion. d. 2.2 billion.
With an upward-sloping supply curve, which of the following is true?
a. An increase in price results in an increase in supply. b. A decrease in price results in a decrease in quantity supplied. c. A decrease in price results in an increase in supply. d. An increase in price results in a decrease in quantity supplied.
Suppose that a new drug has been approved to treat a life-threatening disease. The demand for that drug is shown on the accompanying graph. Prior to approval of this drug, the only treatment for this condition was any one of several non-prescription, or over-the-counter, pain relievers. The demand for one brand of the several non-prescription pain relievers is also shown on the graph.
If the manufacturer of the new drug chose to increase its price from $70 to $75, consumers would buy ________ doses, and have ________ total expenditures.
A. more; higher B. more; lower C. fewer; lower D. fewer; higher