The importance of the bank-lending channel of monetary policy transmission:
A. has become more important as technology has solved the problems of information and moral hazard.
B. becomes more important the more important banks are as a source of funds for firms and individuals.
C. is likely to become more important with the growth of loan brokers and asset-backed securities.
D. none of the answers given is correct.
Answer: B
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The data presented in the text shows that in the period from 1947-2013, real GDP in the United States has
A) decreased in every year since 1947. B) generally remained the same. C) decreased only in recent years. D) increased substantially.
Why is it likely that a market economy will perform better than a command economy?
What will be an ideal response?
Which of these firms have a low supplier power?
a. Pharmaceutical firms b. Semiconductor firms c. Car Dealerships d. Software firms
An indication that Insurance companies anticipate adverse selection is
a. they require a deductible b. they do not classify clients into different risk types according to their claim history c. they do not classify clients into different risk types according to pre-existing conditions d. they do not require a co-payment