All of the following are possible outcomes of a banking crisis EXCEPT
A) depositors, but not banks, may lose all or a portion of their assets.
B) a recession due to decreases in consumption by households.
C) decreases in investment.
D) a contagion effect of the crisis from vulnerable banks to financial institutions on sound basis.
A
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Refer to Figure 17-4. Which of the following is true if the wage rate increases from W0 to W1?
A) The supply curve is unit elastic. B) The income effect and the substitution effect are equal. C) The income effect is larger than the substitution effect. D) The substitution effect is larger than the income effect.
A risk-averse investor will decide whether or not to invest by determining if the expected value of the investment if positive
Indicate whether the statement is true or false
A profit center is
a. evaluated based on minimizing costs within the division b. evaluated based on maximizing costs within the division c. evaluated based on minimizing profits generated by the division d. evaluated based on maximizing profits generated by the division
The concept of "government failure" implies
a. laissez faire is always best. b. government intervention is always justified since government never fails. c. no market failure can be corrected by government intervention. d. government intervention to correct a "market failure" sometimes fails.