One of the most serious effects of a banking panic is that

a. banks will not earn as much profit
b. banks will no longer be trusted by the public
c. people will not place their excess money in banking accounts
d. people may lose any accrued interest on their accounts
e. large withdrawals of cash lead to a severe decrease in reserves and ultimately in the money supply


E

Economics

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Economics

Suppose Trust Bank has $500 million in assets and $400 million in liabilities. The Fed purchases $45 million in bonds from the bank. Which of the following is a likely consequence of the Fed's action?

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Economics

Which of the following would cause the price of the dollar to rise?

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Economics