Which of the following is NOT likely to occur when a bank fails?
A) Everyone that deposits money in the bank loses all or a portion of their money, unless the country has a functioning deposit insurance system.
B) The loss of savings (or the feared loss of savings) causes households to cut back on consumption, which spreads the recessionary effect wider through the country.
C) Unaffected banks may stop making loans as they take a cautious approach, slowing or stopping new investment.
D) Other banks make too many loans to make up for the loans not made by the failed bank, kicking off a cycle of stimulation and inflation.
D
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The tasks performed by the chef at your favorite restaurant could be categorized as
A) a good. B) an economic good. C) a service or intangible good. D) All of the above are correct.
Which of the following insures deposits at banks?
A. The RTC. B. The FDIC. C. The FSLIC. D. The Federal Reserve.
The market demand curve is calculated by:
a) Summing the quantities demanded from individual demand curves. b) Averaging the price demanded from individual demand curves. c) Averaging the quantities demanded from individual demand curves. d) Summing the price from individual demand curves.
Convergence theory seems to fit the experiences of China and India since 1996.
Answer the following statement true (T) or false (F)