Banking crises have occurred throughout the world. What similarities do we find when we look at the different countries?
What will be an ideal response?
Financial deregulation with inadequate supervision can lead to increased moral hazard as banks take on more risk. Although deposit insurance was not necessarily a major factor in every country's bank crisis, there was always some kind of government safety net. The presence of the government safety net also leads to increased risk-taking from the banks.
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The techniques of optimization in levels and optimization in differences:
A) cannot be used to compare the same set of alternatives. B) provide identical answers when comparing the same set of alternatives. C) may provide different answers when comparing the same set of alternatives. D) compare only the costs and ignore the benefits of the alternatives.
Describe the trends in U.S. manufacturing employment and U.S. manufacturing output over the last 40 years. What factors have contributed to these?
What will be an ideal response?
Suppose the intersection of the IS and LM curves is to the right of the FE line. An increase in the price level would most likely eliminate a disequilibrium among the asset, labor, and goods markets by
A) shifting the LM curve up and to the left. B) shifting the IS curve up and to the right. C) shifting the IS curve down and to the left. D) shifting the FE curve to the left.
The great Franco-American cheese war of 2009 began with:
A. beef. B. cheddar cheese import restrictions. C. Swiss cheese quotas. D. camembert cheese tariffs.