Which of the following statements is most accurate about the market for call loans:
a. During the 1920s, the supply of loans increased more than the demand.
b. During the 1920s, credit was being pulled into the stock market by the rising interest rates on call loans.
c. An increased willingness of banks to supply call loans was the decisive factor in causing the bull market.
d. The interest rates on call loans decreased significantly during the 1920s.
b. During the 1920s, credit was being pulled into the stock market by the rising interest rates on call loans.
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One criticism of the Bertrand pricing model is that
A) the model is implausible when there is product differentiation. B) when there is an oligopoly with no product differentiation, the model's prediction is inconsistent with reality. C) the model's predicted price is solely a function of demand conditions. D) the model's predicted price is dependent on the number of firms.
Membership in the Federal Reserve System
A. is limited to national banks. B. is limited to state banks. C. is required of national banks and open to state banks. D. is forbidden to state banks.