China has used its current account surplus to:
A. buy stocks on the New York Stock Exchange.
B. make loans to foreigners.
C. buy U.S. government and agency securities.
D. buy German government and agency securities.
Answer: C
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Economics is the study of the logic of
A. rational decisions. B. decision-making activities. C. ends and means. D. choosing options from those available. E. All of the responses are correct.
Macroeconomic equilibrium occurs when
A) there is no inflation. B) real GDP is equal to potential GDP. C) the aggregate quantity demanded is equal to the aggregate quantity supplied. D) the economy is fully employed. E) the price level equals the potential price level.
A key property of a Diamond-Dybvig bank is
A) it is well-diversified. B) it lends to borrowers. C) it provides benefits very different from the provision of insurance. D) it trades with other banks.
Which of the following statements most accurately describes the role of banks in the United States between the Civil War and WWI?
a. The U.S., which had the largest economy in the world, also had the largest banks in the world. b. Banking reforms increased the ability of state banks to issue their own notes. c. Compared to state banks, national banks generally had higher reserve requirements and more restrictions on how they could handle their assets. d. Those who borrowed money at fixed interest rates gain significantly during deflationary periods.