Besides world trade growth, what can explain the growth of international banking since the 1960s?
A) war in the Middle East
B) government focus on banking regulation.
C) an increase in world travel.
D) the emergence of developing countries like China.
E) desire of depositors to hold currencies outside the jurisdiction of the countries that issue them
E
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Under alternative scenarios, the national debt as a percentage of GDP is projected to rise dramatically
a. True b. False
When a commercial bank borrows from the Fed,
A) the reserves of the bank fall. B) the bank can make more loans. C) it must be because the bank is not meeting its reserve requirements. D) the money supply falls.
most frequently the federal reserve implements monetary policy by
What will be an ideal response?
Suppose that Mexico has external debt, and the value of the country's currency, the peso, falls. Which of the following is true?
A) The peso value of the loans will decrease as well. B) Mexico will find it easier to pay off its external debt. C) Mexico will declare bankruptcy. D) The cost of debt service will be higher.