What would cause a bank run?
A. Borrowers feel that they are being charged too high of an interest rate on their loans.
B. Depositors feel that they are earning too low of a return on their deposits.
C. Depositors feel that the bank does not have sufficient assets to cover their deposits.
D. Bank managers choose to hold more excess reserves.
Answer: C
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In the context of a roulette wheel, gambler's fallacy refers to the belief that:
A) outcomes of a gamble are mostly repetitive. B) winners in a gamble lose the next round. C) outcomes of a gamble tend to avoid repeats. D) winners in a gamble continue to win in streaks.
All of the following countries come close to the free market benchmark except
A) Canada. B) Germany. C) North Korea. D) Singapore.
Currently in the United States, banks count as their reserves
A) only the currency in their vault. B) the currency in their vault plus their holding of Treasury securities. C) only their holding of Treasury securities. D) their liabilities against which they pay no interest. E) the currency in their vault plus their deposits at the Federal Reserve.
For all employee earnings subject to Social Security taxes, what is the current Social Security tax rate for employees?
A) 0.8% B) 2.9% C) 4.2% D) 6.2%