________ in the domestic interest rate causes the demand for domestic assets to increase and the domestic currency to ________, everything else held constant
A) An increase; appreciate
B) An increase; depreciate
C) A decrease; appreciate
D) A decrease; depreciate
A
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The practice of keeping high-risk assets on a bank's books while removing low-risk assets with the same capital requirement is known as
A) competition in laxity. B) depositor supervision. C) regulatory arbitrage. D) a dual banking system.
In behavioral economics, the term salience refers to
A) relevance to the problem being investigated. B) people only consider information when it is conveyed in a subtle manner. C) how an experiment is designed. D) people consider information when it is presented in an "eye grabbing" manner.
The group that sets the Federal Reserve Systems policy on buying and selling government securities (bills, notes, and bonds) is the:
A. Federal Deposit Insurance Corporation (FDIC). B. Federal Bond Sale Authority. C. Council of Economic Advisers. D. Federal Open Market Committee (FOMC).
Which of the following statements is true?
A. Nash equilibrium exist only in games with dominant strategies. B. Dominant strategies do not exist in repeated games. C. Collusive agreements will always break down in repeated games. D. Games with a known ending date undermine reciprocity strategies.