Which is not a measure instituted to offset the moral hazard problem created by the FDIC?
A. Require financial transactions essential to the economy to remain in banks
B. The creation of the Federal Reserve Bank
C. Established strict regulations of banks
D. Separating banks from other financial institutions
Answer: B
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"All available information" in the definition of rational expectations means that
a. agents use all possible information that could be out there. b. agents use all possible public information that could be out there. c. agents use all information that is relevant. d. agents use all information that is available in which the marginal benefits of the information are greater than the marginal costs of gathering the information.
The typical supply curve illustrates that
A) other things equal, the quantity supplied for a good is inversely related to the price of a good. B) other things equal, the supply of the good creates its own demand for the good. C) other things equal, the quantity supplied for a good is positively related to the price of a good. D) price and quantity supplied are unrelated.
Which of the following is not a possible source of last-minute reserves for a private bank?
A. Selling bonds. B. Borrowing reserves from other banks. C. Raising the discount rate. D. Borrowing reserves from the Federal Reserve System.
Which of the following observations is true? a. An unlimited quantity of organs is available in the United States. b. All organs are required to be donated
c. The supply curve for organs is perfectly elastic. d. The demand curve for human organs is upward sloping.