A rumor starts that says a bank has suffered significant losses and may not be able to honor its promises to depositors. This causes most of the depositors to line up in front of the bank the next morning wanting to withdraw their deposits. This is an example of:
A. interest rate risk.
B. operational risk.
C. credit risk.
D. liquidity risk.
Answer: D
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A firm will shut down in the short run if at the profit-maximizing quantity, ___________
A. total revenue is less than total cost B. marginal revenue is less than average fixed cost C. average total cost exceeds the market price D. marginal revenue is less than average variable cost
Which of the following is a non-price determinant of demand?
A) income B) tastes and preferences C) prices of related goods and services D) All of the above are correct.
Use the following table to answer the question below.Alexandra's Production Possibilities ScheduleNatalia's Production Possibilities ScheduleNumber of Scarfs Knitted per dayNumber of Sweaters Knitted per dayNumber of Scarfs Knitted per hourNumber of Sweaters Knitted per hour040433236242916112080Which of the following is an acceptable term of trade?
A. 6 sweaters for 10 scarves B. 8 sweaters for 15 scarves C. 4 sweaters for 10 scarves D. 2 sweaters for 7 scarves
In the United States, monetary policy is formed by:
A. the President and approved by Congress. B. committee. C. the Chairman of the Federal Reserve and can only be overturned by the presidents of the Regional Federal Reserve Banks. D. an individual advised by a close group of people.