Financial institutions are not very heavily leveraged, to prevent risk to the banking system
a. True
b. False
Indicate whether the statement is true or false
False
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As the central bank, the Federal Reserve System provides banking services to
A) banks and regulates financial institutions and markets. B) foreign corporations and determines the exchange rate. C) the government and the stock market. D) individuals and controls the quantity of money. E) banks and determines how much the U.S. government will borrow.
In the classical model, what happens to the level of real GDP if aggregate demand increases?
A) Real GDP increases. B) Real GDP decreases. C) Real GDP would increase at first, then decrease. D) Real GDP would remain the same, at equilibrium.
The United States is the world's leading grain-producing nation. Exporting grain causes the: a. domestic consumption of grain to rise because of the added foreign demand
b. price of grain in the domestic market to fall because foreigners are now taking some of the domestic demand. c. price of grain to domestic consumers to rise because of the added foreign demand. d. standard of living of foreigners to fall because of the lost purchasing power.
An economic model can accurately explain how the economy is organized because it is designed to include, to the extent possible, all features of the real world
a. True b. False Indicate whether the statement is true or false