Gilda's Art Gallery pays a commission to her sales people when they sell a painting. This practice is known as
A) the principal-agent problem.
B) incentive pay.
C) minimizing implicit costs.
D) minimizing explicit costs.
B
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The money demand curve relates ________ to the ________.
A. the aggregate quantity of money demanded; price level B. the aggregate quantity of money demanded; nominal interest rate C. aggregate demand; nominal interest rate D. the aggregate quantity of money demanded; aggregate demand
This basic pattern emerges in the United States: financial institutions are more heavily regulated
A) the smaller is their typical contributor. B) the larger is their typical contributor. C) the riskier are their assets. D) the larger they are in total asset size.
Mortgage-backed securities became a significant issue because I. housing prices fell across all regions. II. these securities were not as widely distributed as previously thought
a. I above only b. II above only c. both I and II above d. neither I nor II above
A bank is insolvent when
A) its liabilities exceed its assets. B) its assets exceed its liabilities. C) its capital exceeds its liabilities. D) its assets increase in value.