If a major crash of the financial system began, the Federal Reserve would
A. prop up stock prices by buying stocks in the 500 largest corporations.
B. raise interest rates in order to provide banks with a more secure stream of income.
C. provide money to banks in order to reassure investors and prevent banks from going bankrupt.
D. immediately reduce the money supply to stop people from withdrawing cash from their banks.
Answer: C
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A normal good is a good for which demand increases as:
a. the income of consumers increases. b. its own price increases. c. the price of close substitutes decreases. d. the total number of consumers increases. e. a reflection of changing consumer tastes.
Elected officials never care about the wishes of the voting public and govern using their own value system.
A. True B. False C. Uncertain
Which of the following is a defining characteristic of a perfectly competitive market?
A) advertisements by well-known celebrities B) persistent economic profits in the long run C) no restrictions on entry into the industry D) higher prices being charged for certain name brands
Aneta has owned an Italian sports car for several years and now she wants to sell it. She paid $8,500 for it in 1993 and she has just sold it for $39,000 in 2015 . How is this sale included in the GDP for 2015?
a. $8,500 is included in 2015 GDP b. $39,000 is included in 2015 GDP c. The increase in value of $10,500 is included in 2015 GDP d. It is not included in 2015 GDP