Suppose there is a bank panic. Which of the following would not be a consequence of this bank panic?
A) Bank total reserves would decrease.
B) Bank checking account balances would decrease.
C) Required reserves would increase.
D) The economy would likely enter into a recession.
E) Individual banks would have to shrink the value of loans they made.
C
You might also like to view...
Which is the least common type of business?
A) sole proprietorship B) corporation C) partnership D) impossible to determine without further information
If Japan seeks to control its exchange rates so that ¥100 = $1, which of the following policies should it NOT maintain?
a. interest rates that provide the same return as alternative international rates b. a stable rate of price level changes that will not cause currency depreciation or appreciation c. a willingness to raise interest rates when its currency begins to depreciate d. a willingness to raise price levels
Of the collection of supply and demand diagrams in Figure 2.2, which one shows the result of a decrease in income if a good is considered normal?
A. Figure 1 B. Figure 2 C. Figure 3 D. Figure 4
Which of the following products is a leading import of the United States?
A. Grains B. Aircraft C. Petroleum D. Generating equipment