Which of the following is the most important protection against fears of bank collapse?
a. The Federal Reserve.
b. The Federal Reserve Open Market Committee.
c. The Federal Deposit Insurance Corporation.
d. The gold and silver that backs Federal Reserve notes.
c
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A principle difference between the original Keynesian model and the new Keynesian model is that in the new version
A) the traditional assumptions of profit maximization is no longer included. B) monetary policy is impotent. C) wages and prices adjust slowly to market conditions. D) All of the above are correct.
A speculative attack:
A. can occur with any currency. B. can occur to currencies with floating exchange rates. C. can occur to currencies with fixed exchange rates. D. are illegal and no longer occur.
If you buy a burger and fries at your favorite fast food restaurant,
a. then neither GDP nor consumption will be affected because you would have eaten at home had you not bought the meal at the restaurant. b. then GDP will be higher, but consumption spending will be unchanged. c. then GDP will be unchanged, but consumption spending will be higher. d. then both GDP and consumption spending will be higher.
Which of the following bond buyers did not buy the bond that best met his or her objective?
a. Jackie wanted a bond with a high interest rate and was willing to take a lot of risk. She purchased a junk bond. b. Andrew wanted a bond that would allow him to legally avoid paying federal income taxes. He purchased a municipal bond. c. Suzy wanted to purchase a bond whose seller was unlikely to default. She purchased a bond that Standards and Poor's rated a low credit risk. d. Cecilia held long-term bonds rather than short-term bonds to avoid risk.