A stress test of banks, such as that undertaken in the Spring of 2009, is designed to:
A) ensure that banks have followed proper accounting standards
B) make sure that banks are properly managed
C) gauge how well banks would fare if the economy worsens
D) estimate the impact of a bank panic on the overall economy
C
You might also like to view...
Arbitrage refers to the act of
A) buying a product in one market at a low price and reselling in another market at a higher price. B) suing a producer for illegal business practices. C) trading in the foreign exchange market. D) resolving a dispute in front of an arbitrator instead of a court of law.
All of the following are considered to be problems associated with the use of concentration ratios to measure market power except:
A) the market definitions used in their construction may be arbitrary. B) two different markets with the same concentration ratio may have very different distributions of market share among firms used to calculate the concentration ratio. C) consideration of exports and imports generally causes concentration ratios to be overstated. D) concentration ratios are often based on national statistics and may not reflect substantial concentration in a market at a more localized level.