An important lesson of the Chilean crisis was that
a. inflows of foreign capital should be strictly regulated
b. governments should ensure that the current account balance is kept close to 0
c. governments need to maintain regulation and oversight of the banking sector
d. government intervention in financial matters leads to capital flight
e. none of the above
C
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Financial intermediaries emerged
A) to make loans to governments. B) to provide a market for municipal bonds. C) to reduce transactions costs for small savers and borrowers. D) to reduce transactions costs for traders in stocks and bonds.
Which of the following is included in M1, but not in M2?
A) currency B) checking account deposits C) travelers checks D) Everything in M1 is in M2.
If the reserve ratio is 20 percent, then $100 of new reserves can generate
a. $60 of new money in the economy. b. $250 of new money in the economy. c. $500 of new money in the economy. d. $2,000 of new money in the economy.
The long run is a planning period:
A. during which the firm can vary all inputs including its plant size. B. less than six months. C. less than one year. D. less than five years.