Which of the following statements is true?
A) Out of two loans, the interest accumulated after the end of a year will be more on the one that is a larger principal.
B) Banks are the only financial institutions that lend money and do not accept deposits.
C) Out of two loans, the interest accumulated after the end of a year will be more on the one that is a smaller principal.
D) Banks are the only financial institutions that do not lend money but accept deposits.
A
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Moral hazard is associated with
A) imperfect information. B) perfect information. C) the low costs of monitoring behavior. D) all of these choices.
If there is an excess demand for money in the economy,
a. there is also an excess supply of money. b. there is also an excess demand for bonds. c. there is also an excess supply of bonds. d. the interest rate will fall. e. there is also an excess supply of housing.