The Fed's lender-of-last-resort function
A) has proven to be ineffective.
B) cannot prevent runs by large depositors.
C) is no longer necessary due to FDIC insurance.
D) creates a moral hazard problem.
D
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The short-run aggregate supply curve shifts leftward when the
A) price level increases. B) general level of technology advances. C) money wage rate increases. D) availability of on-the-job training expands to all workers.
Banking regulation in the United States is strongly influenced by the large amount of __________ deposits and __________ assets banks hold
A) time; illiquid B) time; liquid C) checkable; illiquid D) checkable; liquid
In general, more efficient taxes have:
A. lower administrative burdens. B. more complexity. C. lower revenues given the size of the tax. D. All of these statements are true.
Which of the following would cause the actual deposit expansion multiplier to be less than its potential?
a. the general public holding of funds in the form of currency rather than bank deposits b. the holding of excess reserves by commercial banks c. the general public holding of funds in the form of coins rather than bills d. both a and b