One lesson learned from the bank panics of the early 1930's is:
A. the financial system will collapse without a lender of last resort.
B. only the U.S. Treasury can be a true lender of last resort.
C. the lender of last resort function almost guarantees that bank panics are a thing of the past.
D. the mere existence of a lender of last resort will not keep the financial system from collapsing.
Answer: D
You might also like to view...
Real business cycle theory explains the business cycle as the result of
a. unstable investment demand. b. excess growth of the quantity of money. C. shocks to consumer spending habits d. fluctuations in productivity.
Other things constant, if the population decreases and GDP remains unchanged,
A) real GDP necessarily decreases. B) per capita GDP necessarily increases. C) per capita GDP necessarily decreases. D) real GDP necessarily increases.