In October 2008, Congress passed the Troubled Asset Relief Program (TARP), under which the Treasury provided ________ to banks in exchange for ________
A) bonds; cash
B) lines of credit; loan guarantees
C) funds; stock
D) financial advice; promises to expand mortgage lending
Answer: C
You might also like to view...
Refer to Figure 10.1. The dominant strategy for ________ is to not contribute
A) Daisy B) Bo C) Luke D) all of the above
Suppose a paper mill earns $1,000,000 in profits when it pollutes a river, and it can abate pollution at a cost of $75,000. The effects of the pollution are confined to a single farmer who earns $400,000 if the water he uses from the river is clean and $300,000 if it's polluted. Suppose the law guarantees the farmer access to clean water from the river. Which of the following describes an efficient outcome in this case?
A. The owner of the mill is unable to pay the farmer enough to secure his permission to pollute the river. B. The owner of the mill pays the farmer $87,500 for his permission to pollute the river. C. The owner of the mill pays the farmer $112,500 for his permission to pollute the river. D. The farmer pays the owner of the mill $87,500 to stop polluting.
For a monopoly,
a. price and output are closely-linked choices b. marginal revenue always exceeds marginal cost c. price always exceeds average total cost in the short run d. price is set independently from the output decision e. price is always the highest that the market will bear
The potential money multiplier, m, is
a. 1/excess reserves b. excess reserves × loans c. legal reserve requirement/excess reserves d. 1/actual reserves e. 1/legal reserve requirement