The potential for a financial breakdown at one financial institution to spread throughout the financial system is known as a
A) lending risk. B) systemic risk. C) moral hazard. D) liquidity risk.
B
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The main policy-making body of the Federal Reserve System is the
A) Board of Governors. B) Federal Open Market Committee. C) Federal Reserve Banks. D) member commercial banks.
Refer to Figure 11-16. The figure above illustrates a series of isoquants. Which of the following statements is true?
A) Points z and y represent the same output; this output is produced with more capital at z than at y. B) Point z represents a greater output than point x or point y. C) Points x, z, and y all represent the same output. D) Point x and y represent the same output but the cost of production at y is greater than the cost of production at x.
If a firm is operating at an output level where losses are minimized, the firm
A) has no incentive to stay in the industry. B) is better off exiting the industry. C) is maximizing profits. D) will shut down.
For which of the following programs can a person qualify solely by having a low income?
a. both Temporary Assistance for Needy Families (TANF) and Supplemental Security Income (SSI) b. Temporary Assistance for Needy Families (TANF) but not Supplemental Security Income (SSI) c. Supplemental Security Income (SSI) but not Temporary Assistance for Needy Families (TANF) d. neither Temporary Assistance for Needy Families (TANF) nor Supplemental Security Income (SSI)