Bank regulators impose capital requirements in order to
a. increase the amount of leverage in the economy.
b. provide an incentive for banks to hold risky assets.
c. ensure banks can pay off depositors.
d. increase the probability of a credit crunch.
c
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The opportunity cost of going to college includes: a. both tuition and the value of the student's time
b. tuition, but not the value of the student's time, which is a non-monetary cost. c. neither tuition nor the value of the student's time, since obtaining a college degree makes one's income higher in the future. d. neither tuition nor the value of the student's time, at least at state-supported universities and colleges.
The spreading of fixed costs over more output explains why the long-run average cost falls as output rises
a. True b. False
An increase in the demand for a good refers to a shift in the
a. demand curve to the left b. demand curve to the right c. quantity demanded to the right d. quantity demanded to the left e. price of the good
Classify the following goods into public goods, private goods, club goods, or common resources with suitable reasons
a. Congested roads b. Education provided by a university