Bank examinations by the FDIC help reduce the ________ problem, by preventing bank managers from allocating funds already obtained from depositors to non-creditworthy loans.
A. moral hazard
B. adverse selection
C. contrary selection
D. principled hazard
Answer: A
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When the U.S. interest rate differential ________, the demand for dollars ________ and the demand curve for dollars shifts rightward
A) rises; does not change B) rises; decreases C) falls; increases D) rises; increases E) falls; decreases
Recent research suggests that the federal minimum wage law
a. clearly causes significant unemployment. b. causes unemployment for teenagers. c. causes unemployment for high wage workers. d. may not cause much, if any, unemployment.
A bank which must hold 100 percent reserves opens in an economy that had no banks and a currency of $150 . If customers deposit $50 into the bank, what is the value of the money supply?
a. $50 b. $100 c. $150 d. $200
Which of the following directs the buying and selling of U.S. government securities?
A. Board of Governors B. Federal Reserve Banks C. Federal Open Market Committee D. Federal Advisory Council