To obtain a discount loan from the Fed, a commercial bank must:
A. provide collateral.
B. agree to more frequent examinations.
C. prove that the loan will be used to make loans.
D. prove that it will fail if it does not obtain the loan.
Answer: A
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eBay has a seller reputation system to provide
A) consumers with a signal concerning seller quality. B) sellers a chance to signal other sellers concerning their quality. C) a reduction in monopoly power. D) improvements in investor relations.
There is only one efficient allocation of resources in an economy at one point in time.
Answer the following statement true (T) or false (F)
Crowding out occurs
a. when an increase in government spending crowds out tax revenues. b. when an increase in government spending increases investment spending. c. when an increase in government spending crowds out bonds. d. when an increase in government spending crowds out other types of spending. e. when an increase in government spending crowds out the money supply.
The market supply curve in a perfectly competitive market is usually
A. Vertical. B. Horizontal. C. Downward-sloping. D. Upward-sloping.