Bank runs are a possibility because
A. the FDIC is inefficient.
B. banks do not keep enough reserves to cover all their depository liabilities.
C. bankers are often poor businesspeople.
D. in difficult times people want currency instead of demand deposits.
Answer: B
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Refer to the above figure. As more and more firms are able to and actually do enter the industry, the demand curve of each firm and its marginal revenue curve
A) will shift inward until the demand curve is tangent to the average total cost curve. B) will become vertical. C) will become upward sloping. D) None of the above will occur.
Which of the following statements is correct?
a. In an economy-wide sense, property rights are an important prerequisite for the price system to work. b. Property rights give people the ability to exercise authority over the resources they own. c. Based on the available evidence, the existence of well-established and well-enforced property rights appears to be associated with an enhanced standard of living. d. All of the above are correct.