The country in which two of the categories of banks are clearing banks and merchant banks is

Which of the following economic lessons should we take from developing country crises in Latin America (and elsewhere)?

A) Only that it is important to choose the right exchange rate regime. B) Only that banking is of central importance in any government. C) The order in which reform measures are implemented are irrelevant. D) It is important to choose the right exchange rate regime and banking is of central importance in any government. E) The order in which reform measures are implemented are irrelevant and banking is of central importance in any government.

An increase in the budget deficit shifts the demand for loanable funds to the right

a. True b. False Indicate whether the statement is true or false