A bank failure occurs whenever
A) a bank cannot satisfy its obligations to pay its depositors and have enough reserves to meet its reserve requirements.
B) a bank suffers a large deposit outflow.
C) a bank has to call in a large volume of loans.
D) a bank is not allowed to borrow from the Fed.
Answer: A
Economics
- If the Federal Reserve creates new money to finance the government's deficit, then it is monetizing the deficit.(True/False)
- If the current price is above equilibrium price in a competitive market, we should expect a shortage of the product.(True/False)
- Any time the government sets an artificially low price for a product, it increases the possibility of a shortage of that product.(True/False)
- In cost-push inflation, prices go up because of higher cost of production.(True/False)
- When the Federal Reserve lowers the reserve requirement, the amount of money in circulation should tend to decrease.(True/False)
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- "Dumping" is selling products to foreign countries for less than the price charged.(True/False)
- U.S. businesses were the first to start the trend toward multinational corporations.(True/False)
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- Prices help to determine the opportunity cost of a purchase.(True/False)
- The equilibrium price is where supply and demand curves intersect.(True/False)
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- Unlike other major energy sources, the supply of fossil fuels such as petroleum, natural gas, and coal are unlimited (True/False)
- The demand curve for a firm in a competitive environment is_______.