By acting as a lender of last resort during a banking panic, a central bank allows commercial banks to
A) encourage the public to borrow directly from the central bank, taking pressure of the banking system.
B) satisfy customer withdrawal needs and eventually restore the public's faith in the banking system.
C) call in their loans to their customers and eventually restore the public's faith in the banking system.
D) make additional loans to increase the assets on their balance sheets.
B
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The Solo Coal Mine is the only employer in the small town of Way out there. The market supply of coal miners is Qs = 0.02W - 200 and Qd = 500 - 0.02W, where W is the annual wage of a coal miner and Q is the number of coal miners. What is the wage required to hire the profit maximizing number of workers?
A. $25,000 B. $50,000 C. $20,000 D. $15,000
The most commonly accepted objective for a firm is
A) to stay in business at all cost. B) to maximize total revenue. C) to maximize economic profit. D) to minimize the variable cost outlay.
Suppose your consumption function shifts downward. This can be caused by if the consumption function shifts downward, which of the following is the most likely cause?
A. An increase to the price level B. An increase to your disposable income C. A decrease to the interest rate D. A decrease in housing prices
Any firm?s ________ equals P × q.
A. total cost B. total revenue C. marginal cost D. marginal revenue