What is banking panic?
What will be an ideal response?
Answer: A situation in which many banks experience runs at the same time
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Which of the following central banks does not have an explicit inflation target?
a. The Bank of England b. The Federal Reserve c. Swiss National Bank d. European Central Bank
Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive. 
The long-run equilibrium price in this industry is:
A. $10 B. $0 C. $5 D. $15
Suppose someone offers Max the following gamble: with probability 0.50 he will win $10 and with probability 0.50 he will lose $8. The expected value of this gamble is:
A. $1. B. $2. C. $0. D. $5.
Suppose the interest rate falls and the quantity of money borrowed (and lent) increases. Which of the following could have caused this to occur?
A. An increase in the demand for loans B. A decrease in the supply of loans C. An increase in the supply of loans D. A decrease in the demand for loans