Bank panics:
A. occur frequently in fractional reserve banking systems.
B. are a risk of fractional reserve banking but are unlikely when banks are highly regulated
and lend prudently.
C. cannot occur in a fractional reserve banking system.
D. occur more frequently when the monetary system is backed by gold.
B. are a risk of fractional reserve banking but are unlikely when banks are highly regulated
and lend prudently.
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With regards to money in the colonies,
(a) the colonies did not produce enough of their own precious metals to coin money. (b) the British did not allow the export of their own coins to the colonies but did not object to foreign coins flowing into the colonies. (c) the British did not allow paper money created by the colonies to be declared legal tender, but this policy did not prohibit the colonists' use of it. (d) all of the above apply.
What did the growing inequality of income during the 1920s indicate?
(a) That consumption expenditures would tend to weaken even though total income continued to rise (b) That spending for goods and business incentives to produce those goods became increasingly dependent on the wealthy (c) That the economy became more vulnerable to any shock, such as a stock market crash, that reduced the willingness of the wealthy to buy goods (d) All of the above
The American Federation of Labor was founded on the principles of racial and worker solidarity
Indicate whether the statement is true or false
Capitalism:
A. gives private property rights to government. B. does not have a rationing mechanism. C. relies on market forces to establish initial property rights. D. is based on private property and the market.