Which of the following will not help to prevent bank runs?
a. government insurance of deposits
b. fractional reserve banking
c. 100% reserve banking
d. All of the above prevent bank runs.
b
You might also like to view...
What is the real interest rate if the nominal interest rate is 7 percent and the expected inflation rate is 7 percent?
Money is not ________
A) income because the former is a stock measure and the latter a flow B) wealth because the former is generally used to procure the latter C) as inefficient as barter because the latter requires a double coincidence of wants D) all of the above E) none of the above
If autonomous consumption decreases, which of the following combinations of events would be most likely to occur?
a. An upward shift of the aggregate expenditure line, a rightward shift of the money demand curve, and a leftward shift of the aggregate demand curve b. A downward shift of the aggregate expenditure line, a leftward shift of the money demand curve, and a leftward shift of the aggregate demand curve c. A downward shift of the aggregate expenditure line, a leftward shift of the money demand curve, and a rightward shift of the aggregate demand curve d. A downward shift of the aggregate expenditure line, a rightward shift of the money demand curve, and a rightward shift of the aggregate demand curve e. An upward shift of the aggregate expenditure line, a rightward shift of the money demand curve, and a rightward shift of the aggregate demand curve.
Inflation must be high in Moscow because it is very expensive to live there.
Answer the following statement true (T) or false (F)