At the beginning of the financial crisis, banks were hurt by all of the following EXCEPT

A) declines in the value of mortgage-backed securities.
B) defaults on mortgages by those with subprime mortgages.
C) holding too many Treasury bonds.
D) not being repaid on loans to real estate developers.

C

Economics

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Assume that the interest parity condition holds. Also assume that the U.S. interest rate is 6% while the U.K. interest rate is 8%. Given this information, financial markets expect the pound to

A) depreciate by 14%. B) depreciate by 2%. C) appreciate by 2%. D) appreciate by 6%. E) appreciate by 14%.

Economics

the diagrams best portrays the effects of a decrease in the availability of key natural resources?



Use the following diagrams for the U.S. economy to answer the following question.
A.  A.
B.  B.
C.  C.
D.  D.

Economics