Explain the difficulties in regulating international banking
What will be an ideal response?
(1 ) No deposit insurance, in particular, inter-bank deposits are unprotected
(2 ) Absence of reserve requirements
(3 ) bank examination more difficult to enforce
(4 ) not clear which group of regulators has responsibility for monitoring a given bank's assets
(5 ) not clear which central bank, if any, is responsible for providing Lender of Last Resort assistance.
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Senior citizen and student discounts on tickets at movies theaters are examples of
a. First-degree price discrimination. b. Second-degree price discrimination. c. Third-degree price discrimination. d. A two-part tariff.
The one organization that has the power to change the total amount of reserves in the banking system is the
A) Executive Branch of the Federal Government. B) U.S. Treasury. C) Federal Reserve System. D) Congress.
A good is excludable if
a. one person's use of the good diminishes another person's enjoyment of it. b. the government can regulate its availability. c. it is not a normal good. d. people can be prevented from using it.
Which of the following events would reduce the size of the "real-world" money multiplier?
A. Banks hold more excess reserves. B. Households hold less currency. C. The Fed increases the discount rate. D. The Fed reduces the required reserve ratio.