Which of the following represents a preventative measure against bank runs?
A) The President of the United States can order banks to pay depositors.
B) The Federal Reserve can lower reserve requirements to ensure that banks have sufficient funds.
C) The FDIC provides deposit insurance.
D) None of the above is correct.
Answer: A) The President of the United States can order banks to pay depositors.
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If there is a center country to which other nations peg under a noncooperative arrangement, which nation(s) have monetary policy authority?
A) none B) all C) industrialized nations only D) the center nation only
Refer to Table 3-5. The table contains information about the corn market. Use the table to answer the following questions
a. What are the equilibrium price and quantity of corn? b. Suppose the prevailing price is $9 per bushel. Is there a shortage or a surplus in the market? c. What is the quantity of the shortage or surplus? d. How many bushels will be sold if the market price is $9 per bushel? e. If the market price is $9 per bushel, what must happen to restore equilibrium in the market? f. At what price will suppliers be able to sell 24,000 bushels of corn? g. Suppose the market price is $21 per bushel. Is there a shortage or a surplus in the market? h. What is the quantity of the shortage or surplus? i. How many bushels will be sold if the market price is $21 per bushel? j. If the market price is $21 per bushel, what must happen to restore equilibrium in the market?