Poorly performing financial markets can be the cause of
A) wealth.
B) poverty.
C) financial stability.
D) financial expansion.
B
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In long-run perfectly competitive equilibrium, which of the following is false?
A) There is efficient, low-cost production at the minimum efficient scale. B) Economies of scale are exhausted. C) Economic surplus is maximized. D) Firms earn economic profit.
Suppose that the Fed undertakes an open market purchase of $5 million worth of securities from a bank. If the required reserve ratio is 12%, what is the resulting change in checkable deposits (or the money supply), assuming that there are no cash leakages and that banks hold zero excess reserves?
A) $4.17 million B) $7.95 million C) $5.68 million D) $41.67 million
Which of the following statements is true?
A. The calculated t statistic is valid and efficient in case of a spurious regression. B. If an explanatory variable or a dependent variable is integrated of the order one, the OLS estimators are asymptotically normally distributed. C. An error correction model can be used to study the short-run dynamics in the relationship between the dependent variable and the explanatory variables in a time series model. D. The Dickey-Fuller test can be used to test for heteroskedasticity in the error terms.
Private costs are included in social costs.
Answer the following statement true (T) or false (F)