A lender of the last resort refers to
A) a role of the central bank to prevent bank runs for temporary problems of liquidity.
B) a role for the government to ensure that the central bank has adequate reserves.
C) a reason for regulating banks.
D) the need for market based regulations in the banking industry.
A
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What incentive does price cap regulation attempt to give the firm? How does it give the firm this incentive?
What will be an ideal response?
Which of the following is NOT a barrier to entry that would allow a monopolist to keep potential competitors out of its market?
A. The firm has government authorization to be a monopoly. B. The market price of the product is too high. C. The firm has a patent on the good or control over some resource required for the production of the good. D. Significant economies of scale exist.
The Maastricht treaty was the first step toward
A. gaining credibility for monetary policy. B. European monetary union. C. reducing the costs of disinflation. D. having free trade between Russia and China.
When a firm decides to retain its earnings instead of paying dividends, the stockholders necessarily suffer
a. True b. False Indicate whether the statement is true or false