Financial markets and financial intermediaries comprise the financial system
Indicate whether the statement is true or false
TRUE
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Trade restrictions are often motivated by a desire to save domestic jobs threatened by competition from imports. Which of the following counter-arguments is made by economists who oppose trade restrictions?
A) Trade restrictions benefit consumers in the short run but not in the long run. B) Statistics show that trade restrictions actually do not save jobs. C) Consumers pay a high cost for jobs saved through trade restrictions. D) Trade restrictions have a limited impact because most Americans prefer domestic goods over imports.
The Financial Services Modernization Act
A) effectively repealed the Glass-Steagall Act of 1933. B) increased restrictions on cross-ownership of different types of financial institutions. C) allowed mergers between commercial banks and investment banks, but not between commercial banks and insurance companies. D) All of the above.
In public education, the value of the services provided is
A) greater than the value that parents and students place on the services. B) equal to the value that parents and students place on the services. C) less than the value that parents and students place on the services. D) zero since they are a public good.
The short-run aggregate supply curve is positively sloped. Which of the following is not one of the explanations given in the text?
a. the misperception effect b. Sticky wage theory c. market effect d. All of the above are explanations of the profit effect.