What were the two main rationale for exempting nonbanks from restrictions on assets and degrees of leverage?
What will be an ideal response?
First, policymakers did not see these firms as being as important to the financial system as were commercial banks, and regulators did not believe that the failure of these firms would damage the financial system. Second, these firms deal primarily with other financial firms, institutional investors, or wealthy private investors rather than with unsophisticated private investors.
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Which of the following statements is true?
A) An increase in the money wage rate shifts the AS curve rightward. B) A fall in the price level shifts the AS curve leftward. C) A decrease in potential GDP decreases aggregate supply and shifts the AS curve leftward. D) An increase in the money wage rate increases potential GDP. E) An increase in potential GDP increases aggregate supply and shifts the AS curve leftward.
The above figure shows the U.S. market for 1 carat diamonds. With free trade, the United States produces ________ diamonds and imports ________ diamonds
A) 300,000; 600,000 B) 0; 900,000 C) 100,000; 900,000 D) 100,000; 800,000 E) 500,000; 400,000
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.
Which of the following does NOT describe the intended purpose of the antitrust laws of the United States?
A) to promote competition within the economic system B) to reduce the power of monopolies C) to prohibit certain economic activities that promote trade D) to restrict the formation of monopolies