Banks are considered a safer place to deposit money now than they were prior to 1933 because:
a. gold reserves have increased
b. reserve requirements are higher.
c. they are more closely regulated.
d. the FDIC was created.
c
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The trade-offs facing consumers include:
A) how to allocate income across goods and serves. B) how to allocate income between consumption and savings. C) both A and B D) none of the above
Given that most people like the smell of baking cinnamon rolls and dislike the smell of burning tires, baking cinnamon rolls generates ________ externality, and burning tires generates ________ externality.
A. no; a negative B. a positive, no C. a positive; a negative D. a negative; a positive
Compare and contrast financial institutions that act as brokers to those that transform assets. In what sense are both types of institutions financial intermediaries? Provide one example of each type and describe how each functions as a financial intermediary.
What will be an ideal response?
An increased risk of a financial crisis in the euro area should cause the:
A. price of U.S. Treasury bonds to increase and the yield on other bonds to increase. B. risk spread between U.S. Treasury bonds and other bonds to decrease. C. demand for all government securities including U.S. Treasury securities to decrease. D. price of U.S. Treasury bonds to increase and the yield on other bonds to decrease.