Traditionally, Wall Street investment banks had been organized as partnerships, but by 2000 they had converted to being publicly traded companies
As partnerships, the principal-agent problem is ________ because there is ________ separation of ownership from control.
A) increased; little B) reduced; much C) reduced; little D) increased; much
C
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Assume someone organizes all farms in the nation into a single-price monopoly. As a result, the amount of food produced
A) remains constant. B) decreases. C) increases. D) might increase or decrease depending on whether the demand for food is elastic or inelastic. E) might increase or decrease depending on whether the monopoly's marginal revenue curve lies below or above its demand curve.
When the Fed ________ securities in an open market operation, banks' reserves ________, and therefore lending ________
A) sells; increase; increases B) buys; increase; increases C) sells; decrease; increases D) buys; decrease; decreases E) buys; do not change; does not change