Bank regulators are concerned about the safety of depositors because
a. bank failures were common throughout most of U.S. history and have even occurred in recent decades.
b. in the absence of federal insurance, depositors would lose their money if a bank failed.
c. nervous depositors may rush to withdraw their accounts and produce a "run" that could threaten even a sound bank.
d. All of the above are correct.
d
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If mortgages and houses are complements in consumption and interest rates decrease, we would expect to see
a. An increase in demand for houses b. An decrease in demand for houses c. An increase in the quantity of houses demanded d. An decrease in the quantity of houses demanded
Which of the following statements would appeal to someone who favors an expanded public sector as the basis of expansionary fiscal policy?
a. "The government isn't the solution; it's the problem." b. "The government that governs least governs best." c. "The American people want national defense; they want laws to be enforced; they want federal support for education and environmental protection, and they want transfer payments for the elderly and unemployed." d. "If you ever got anything good out of the government you can be sure that some rich so-and-so got more."
In 2012, federal expenditures on income transfers, health care, national defense, and interest on the national debt accounted for
a. less than 20 percent of federal spending. b. about 40 percent of federal spending. c. approximately 50 percent of federal spending. d. more than 85 percent of federal spending.
A free rider is a person who pays for a good but does not receive the benefit of it
a. True b. False Indicate whether the statement is true or false