A key reason that Congress established the Fed to act as a lender of last resort was to prevent ________, the process by which a run on one bank spreads to other banks, resulting in a bank panic
A) contagion
B) asset inflation
C) moral hazard
D) bailouts
A
You might also like to view...
The aggregate supply curve represents levels of output that producers are willing to sell at
A) each level of the real interest rate. B) each level of real GDP. C) each price level. D) each inflation rate.
Motivation can be divided into two types:
a. Intrinsic and extrinsic b. Planned and non-planned c. Mysterious and obvious d. Achievement-oriented and open-ended
Assume that a single insurance plan covers 2,000 low-risk people and 1,000 high-risk ones, all of whom pay the same premium, at which the insurer breaks even. If the average claim submitted by low-risk people is $100 while that submitted by high-risk people was $1,000 . what would be the net benefit to a low-risk person from holding a policy?
a. -$300 b. -$250 c. $100 d. $500
After the point of diminishing marginal returns
A) marginal product rises. B) production should stop. C) marginal product falls. D) marginal product shifts from negative to positive.