Which of the following is NOT a reason that firms in the shadow banking system were more vulnerable than commercial banks during the financial crisis of 2007-2009?
A) They could invest in riskier assets.
B) Investors had no insurance against loss of principal.
C) They made investments that would lose value if housing prices decline.
D) They were more heavily regulated than commercial banks, making them less able to adjust to changing market conditions.
D
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Refer to the scenario above. What will the outcome of this game be?
A) Both players will choose black. B) Both players will choose white. C) Arthur will choose white and Catherine will choose black. D) Catherine will choose white and Arthur will choose black.
If the marginal product of capital is greater than the rental cost of capital in terms of goods and services, then ________
A) the firm should continue to produce using that same amount of capital B) the firm should add additional capital C) the firm should reduce the amount of capital is using D) diminishing returns have been avoided
In reference to industrywide advertising, managers of non-agricultural and non-franchised industry associations face which of the following problems?
A) The participating firms can both free -ride and protest the amount they are asked to pay for the advertising. B) The participating firms can protest the amount they are asked to pay for the advertising, but they cannot free -ride. C) The participating firms can neither free -ride nor protest the amount they are asked to pay for the advertising. D) The participating firms can free-ride, but they cannot protest the amount they are asked to pay for the advertising.
Consumption is spending by: a. households on goods and services
b. households on capital goods and inventories. c. businesses on corporate social responsibility initiatives. d. government on subsidizing consumption goods.