Off-balance sheet activities involving guarantees of securities and back-up credit lines
A) have no impact on the risk a bank faces.
B) greatly reduce the risk a bank faces.
C) increase the risk a bank faces.
D) slightly reduce the risk a bank faces.
C
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With which choice are you more likely to avoid Bid-rigging cartels?
a. Holding Vickery auctions b. Holding sealed-bid auctions c. Holding English auctions d. Both A&B
Politicians and economists who are generally conservative tend to believe that
a. the self-correcting mechanism is slow and unpredictable. b. the short-run Phillips curve is relatively steep. c. the costs of unemployment are high. d. expectations in reaction to policy measures are very slow to change.
Bureaucratic capture occurs when:
A. industries become halted in their ability to continue operating due to over-regulation of the market. B. professionals from one particular industry hold the majority of positions in one particular government office. C. government positions are filled by people with close ties to the group they are supposed to regulate D. lobbyist groups become so powerful that they essentially have a stranglehold on policymakers.
Diseconomies of scale mean that:
A. the advantages of specialization are being more fully realized. B. a firm's long-run average total cost curve is rising. C. a firm's long-run average total cost curve is declining. D. a given increase in inputs results in a more-than-proportionate increase in output.