One of the risks of maturity transformation is that:
A) it can increase the rate of inflation. B) it reduces the profitability of banks.
C) it can lead to bank runs. D) it discourages savings.
C
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When a monopolist sells positive levels of output, its demand curve:
A) lies below its marginal revenue curve. B) lies above its marginal revenue curve. C) and marginal revenue curve overlap D) is vertical while its marginal revenue curve is horizontal.
An example of a public good that is difficult to make excludable is:
A. sewer systems. B. fire protection. C. national defense. D. All of these are nonexcludable public goods.
Which of the following represents a problem with the federal budget process in the U.S.?
a. Congress must approve a budget with at least a 2/3 majority vote. b. The federal budget must be balanced each year. c. Congress has only limited control over much of the budget, because about 3/4 of budget outlays are determined by existing laws. d. Congress approves a budget that keeps capital budget and operating budget separately.
If a country is a net importer of a good, the price of that good will ________ when the economy goes from closed to open for trade.
A. increase B. stay the same C. decrease D. first increase then decrease