If depositors become worried about the safety of their deposit accounts, they may trigger a
A. deposit surplus.
B. bank run.
C. fiscal policy crisis.
D. required reserve increase.
Answer: B
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What is an accurate implication resulting from an increase in income?
A) an increase in exchange rate B) a decrease in exchange rate C) a decrease in consumption D) a decrease in output E) an increase in consumption
L. Frank Baum's classic 1900 children's book, The Wonderful Wizard of Oz, is
A) an allegorical rendition of the U.S. political struggle over silver. B) an allegorical rendition of the U.S. political struggle over copper. C) an allegorical rendition of the U.S. political struggle over both silver and gold. D) an allegorical rendition of the U.S. political struggle over indebted farmers. E) an allegorical rendition of the U.S. political struggle over gold.
Briefly and concisely define the following terms:
a. fiscal federalism b. horizontal equity c. vertical equity d. benefits principle of taxation
Assuming the free flow of capital across borders, explain why a country that has a fixed exchange rate cannot have an independent monetary policy reaction curve.
What will be an ideal response?