What matters most during a bank run is:
A. the solvency of the bank.
B. the liquidity of the bank.
C. the number of loans outstanding.
D. the size of the bank's assets.
Answer: B
You might also like to view...
A nation can produce two products: tanks and cars. The table below is the nation's production possibilities schedule:Production Possibilities ScheduleProductABCDEFTanks012345Cars10009508506503500Given the production possibilities schedule above, a combination of 3 tanks and 350 cars
A. illustrates the trade-off between tanks and cars. B. is not attainable because this combination is not listed in the schedule. C. is attainable but entails some unemployment or inefficient use of society's resources. D. cannot be produced by society, given its current resources and production technology.
Assume that it is predicted that for the years after you graduate from college, the entire economy will experience a long period of prosperity when incomes grow rapidly
What type of industry would be the best for you to find employment if this prediction is correct? An industry that produces a product that is A) income elastic. B) income inelastic. C) inferior. D) a substitute good. E) none of these industries
Which of the following policies would reduce the user cost of capital?
A) a reduction in the money supply B) a reduction in the personal income tax rate C) an increase in the corporate profit tax rate D) an increase in an investment tax credit
The "invisible hand" is
a. used to describe the welfare system in the United States. b. a concept developed by Adam Smith to describe the virtues of free markets. c. a concept used by J.M. Keynes to describe the role of government in guiding the allocation of resources in the economy. d. a term used by some economists to characterize the role of government in an economy — inevitable but invisible.