An international lender of last resort creates a serious moral hazard problem because ________ and other ________ of banking institutions expect that they will be protected if a crisis occurs
A) depositors; debtors
B) depositors; creditors
C) borrowers; debtors
D) borrowers; creditors
B
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Stock options were developed as a form of executive compensation
A) in order to enhance accounting profits. B) in order to align CEO performance with shareholder interests. C) in order to align the performance with the performance of the CEO. D) in order to make CEOs more socially aware.
What is meant by an objective?
a) A policy b) A way of reaching a target c) A target d) A strategy
A shortage occurs whenever
a. quantity demanded exceeds quantity supplied at the equilibrium price. b. price is less than equilibrium price. c. quantity demanded is less than quantity supplied. d. goods are scarce. e. some of the people who need the product are not willing and able to buy it at the equilibrium price.
An increase in the nominal interest rate, all else held constant, will always cause which of the following?
A) the real interest rate to decrease B) the expected inflation rate to decrease C) the demand for money to increase D) all of the above E) none of the above