The additional capital requirements put in place following the banking crisis of the 1980s led to a:
A. further slowdown in bank lending.
B. prolonged economic slowdown lasting much of the 1990s.
C. period of rapid economic growth in the early 1990s.
D. quick rebound in the willingness and ability of banks to make loans.
Answer: A
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All of the following are financial institutions that accept deposits and make loans to people and businesses EXCEPT
A) central banks. B) savings and loans. C) savings banks. D) commercial banks. E) credit unions.
The unemployment rate equals the number of
A) unemployed workers multiplied by 100. B) unemployed workers divided by the population then multiplied by 100. C) unemployed workers divided by the number of employed workers then multiplied by 100. D) unemployed workers divided by the labor force then multiplied by 100.
If the interest rate were to rise, we expect that
A) autonomous expenditures will rise. B) the supply of money will fall. C) the amount of money people want to hold will rise. D) the amount of money people want to hold will fall.
The Pareto optimality concept is _____
a. equivalent to the concept of economic efficiency b. equivalent to Pareto superiority c. equivalent to utilitarianism d. equivalent to cost-benefit analysis