A central bank like the Federal Reserve in the United States can help banks survive a bank run by
A) printing money.
B) acting as a lender of last resort.
C) raising the discount rate.
D) increasing the required reserve ratio.
Answer: B
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Everything else held constant, an increase in the excess reserve ratio will mean ________ in the M1 money multiplier and ________ in the M2 money multiplier
A) an increase; an increase B) no change; an increase C) a decrease; a decrease D) no change; a decrease
Secondary credit provided by the Fed is designed for:
A. foreign banks. B. banks that want to borrow without putting up collateral. C. banks who qualify for a lower interest than what is available under primary credit. D. banks that are in trouble and cannot obtain a loan from anyone else.
The laws relating to trespass, the use of airspace and unobstructed view tell us what about property rights definition in the United States?
A. The laws vary depending on information costs and enforcement costs. B. The laws are not absolute in protecting a property owner from intrusion. C. The laws rely on cost-benefit analysis to arrive at efficient outcomes. D. Property laws involve all of these considerations.
When economists view technological change as internal to the economy, they mean that it:
A. occurs randomly. B. occurs accidentally. C. arises deliberately from the profit motive and competition. D. arises mainly from government subsidies.