Why did Goldman Sachs and Morgan Stanley seek to become financial holding companies in October 2008?
What will be an ideal response?
As financial holding companies, Goldman Sachs and Morgan Stanley could both borrow from the Fed and, following Congress's passage of the Troubled Asset Relief Program (TARP) in October 2008, be eligible for injections of capital from the U.S. Treasury purchasing their stock.
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Which of the following statements is true?
A. If a good is nonrivalrous in consumption then it is nonexcludable, too. B. A good can be rivalrous in consumption but not nonexcludable, too. C. An apple is nonrivalrous in consumption. D. Many economists maintain that the market fails to produce nonexcludable private goods. E. none of the above
Suppose there is a firm with a fixed cost of $10 and the firm produces furniture that requires wood and labor as inputs. When does the firm's average total cost curve intersect the average variable cost curve?
a. when the price of furniture falls below $10 b. at the minimum of the average total cost curve c. at the point of greatest labor efficiency d. when the marginal cost curve intersects the average variable cost curve e. never
In a system of 100-percent-reserve banking, the purpose of a bank is to
a. make loans to households. b. influence the money supply. c. give depositors a safe place to keep their money. d. buy and sell gold.
Modern economics as a field of study is usually thought to have begun with which of the following?
What will be an ideal response?