One of the most serious effects of a banking panic is that
a. banks will not earn as much profit
b. banks will no longer be trusted by the public
c. people will not place their excess money in banking accounts
d. people may lose any accrued interest on their accounts
e. large withdrawals of cash lead to a severe decrease in reserves and ultimately in the money supply
E
Economics
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Which of the following is not true of Federal Reserve notes? a. They are fiat money
b. They are a liability of the Fed. c. They are redeemable for other Federal Reserve notes. d. They are redeemable for gold. e. They are counted as currency in the money supply
Economics
The most broadly based price index is the:
a. GDP chain price index. b. real GDP price index. c. producer price index. d. consumer price index.
Economics