A reason why rogue traders have bankrupt their banks is due to
A) the separation of trading activities from the bookkeepers.
B) stringent supervision of trading activities by bank management.
C) accounting errors.
D) a failure to maintain proper internal controls.
D
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Which of the following would be considered an example of monetary policy?
A. A broad government initiative to reduce the country's reliance on agriculture and promote high-technology industries. B. A decision by a developing country to reduce government control of the economy and to become more market-oriented. C. A reduction in income tax rates. D. Provision of additional cash to the banking system.
Input efficiency:
A. means that holding constant the total amount of each input used in the economy, there is no way to increase any firm's output without decreasing the output of another firm. B. is not a requirement of Pareto efficiency in a production economy. C. exists when it is possible to produce more of one good and at least as much of every other good using the same inputs. D. is the same as efficient efficiency.
If a union wishes to maximize the number of union members employed, it will
A) accept the competitive wage. B) set a wage below the competitive wage. C) set a wage where the elasticity of demand for labor equals one. D) set a wage above the competitive wage.
The crowding-out effect refers to the possibility that:
A. when used simultaneously, expansionary fiscal and monetary policies are counterproductive. B. the asset demand for money varies inversely with the interest rate. C. deficit financing will increase the interest rate and reduce investment. D. an increase in the supply of money will result in a decline in velocity.