Explain why the FDIC is following a "too-big-to-fail" policy of fully protecting all depositors at the largest banks

What will be an ideal response?


A tricky question. The FDIC does that although, officially, it still applies only to the $100,000 limit. Probably, the idea is that the cost to one depositor is unbearable relative to the small cost we all need to pay as a collective. Also, there are the issues of political pressure and avoiding blaming the government for mismanaging the safe guards.

Economics

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Strictly speaking, which entity below makes decisions?

A) The House B) The Senate C) Congress D) All of the above. E) None of the above.

Economics

Assume the standard trade model with two countries (Alpha and Beta), two goods (food and drink), and two factors of production (land and labor). Further assume that Alpha is relatively labor-abundant and food is relatively land-intensive. According to the Heckscher-Ohlin theory, Alpha has a comparative advantage in the production of

A. both goods. B. neither good. C. drink. D. food.

Economics

Table 14.1Refer to Table 14.1. In which market do buyers underestimate the chance of getting a lemon?

A. 1 only B. 2 only C. 3 only D. 1 and 3 only

Economics

Securities and exchange commission

What will be an ideal response?

Economics