Which of the following statements most accurately describes the role of banks in the United States between the Civil War and WWI?
a. The U.S., which had the largest economy in the world, also had the largest banks in the world.
b. Banking reforms increased the ability of state banks to issue their own notes.
c. Compared to state banks, national banks generally had higher reserve requirements and more restrictions on how they could handle their assets.
d. Those who borrowed money at fixed interest rates gain significantly during deflationary periods.
c. Compared to state banks, national banks generally had higher reserve requirements and more restrictions on how they could handle their assets.
You might also like to view...
Which of the following is not a depository institution?
A) a savings & loan association B) a mutual savings bank C) an investment bank D) a credit union
When the price of milk rises, there is no change in the amount of dog food purchased. This is an example of:
A. indifference trade-off between the two goods. B. the interaction between two correlated goods. C. two items that are uncorrelated. D. the value people place on dogs versus milk.
If the public takes funds from currency in circulation and deposits them into their checking accounts, the:
a. M1 and M2 money multipliers fall. b. M1 and M2 money multipliers rise. c. M1 and M2 money multipliers do not change. d. M1 money multiplier rises, and the M2 money multiplier falls. e. M1 money multiplier falls, and the M2 money multiplier rises.
Suppose that demand for a good decreases and, at the same time, supply of the good decreases. What would happen in the market for the good?
a. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. b. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. c. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.