Which of the following is true of the function of the lender of last resort?
a. Large commercial banks provide loans at low rates of interest to small banks when the small banks are unable to meet the demands of the depositors.
b. The central bank reduces the discount rate to facilitate borrowing by commercial banks from the central bank.
c. Commercial banks provide loans to customers with bad credit ratings who are unable to get loans from any other sources.
d. The central bank reinforces the effect of deposit insurance and reassures bank customers that they will not lose their money.
d
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Money is used as a ________ when you visit the local farmers' market and compare prices across different vendors
A) means of payment B) unit of account C) store of value D) medium of exchange E) measure of barter
An input-output table details the sales of each industry to all other industries in an economy
Indicate whether the statement is true or false
Departures from interest parity
A) can be explained using theories of risk premium. B) cannot be explained using theories of risk premium. C) may or may not be able to be explained using theories of risk premium, more research is needed. D) are completely unrelated to risk premium. E) occur when risk premium is over calculated.
Describe each of the following as a positive demand shock, a negative demand shock, a positive supply shock, or a negative supply shock, and specify how each are represented on the Phillips curve
a. a sudden increase in oil prices b. a large increase in spending on residential construction c. a sudden decrease in household wealth resulting from a stock market crash d. a substantial increase in productivity following technological advancements