A bank that cannot meet its loan commitments is experiencing the results of:
A. credit risk.
B. trading risk.
C. interest rate risk.
D. liquidity risk.
Answer: D
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The amount earned by owners of the nation's factors of production is
A) total income. B) private and government transfer payments. C) the wages and fringe benefits received by the nation's workers. D) all profits received by businesses.
Refer to Figure 5.1. All else equal, an increase in the number of workers will cause a
A) shift from PF1 to PF2. B) shift from PF2 to PF1. C) movement up and to the right along PF1. D) movement down and to the left along PF2.
By the permanent-income hypothesis, for every dollar that actual income increases, consumption expenditure rises in the short run by ________ dollars
A) kj B) k + j C) k/j D) k - j E) j + (1/k)
An increase in lifetime wealth
A) increase current labor supply and increase current consumption demand. B) increase current labor supply and decrease current consumption demand. C) decrease current labor supply and increase current consumption demand. D) decrease current labor supply and decrease current consumption demand.