The Federal Reserve
A. is not legally authorized to monitor or regulate complicated financial derivatives.
B. should not have promoted the use of complicated financial derivatives the way it did during the financial crisis.
C. did not pay close enough attention to derivatives in the period leading up to the financial crisis.
D. could have prevented the financial crisis through the use of complicated financial derivatives.
Answer: C
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The Friedman rule works because
A) it maximizes productivity. B) it eliminates over-consumption. C) it encourages people to hold the appropriate quantity of money. D) it can be implemented by the private sector.
If there is a causal relationship between two variables X and Y
A) both should be used as explanatory variables. B) then the causal variable should be used as the explanatory variable. C) then they must be positively correlated. D) one of them can be omitted from the analysis.
Only a bare majority of minority and women workers favor special preferences
Indicate whether the statement is true or false
When a check is cleared against a bank, the bank will lose:
A. loans and demand deposits. B. cash and securities. C. checkable deposits and reserves. D. reserves and capital stock.