Explain the difficulties in regulating international banking
What will be an ideal response?
(1 ) No deposit insurance, in particular, inter-bank deposits are unprotected
(2 ) Absence of reserve requirements
(3 ) bank examination more difficult to enforce
(4 ) not clear which group of regulators has responsibility for monitoring a given bank's assets
(5 ) not clear which central bank, if any, is responsible for providing Lender of Last Resort assistance.
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A. panel (b) only. In panel (b), there will be
A. a shortage of wheat. B. a surplus of wheat. C. equilibrium in the market. D. lines of people waiting to buy wheat.
If the price of aluminum used to make bicycles increases, the price of a bicycle rises because of a
A) rightward shift of the demand curve for bicycles. B) rightward shift of the supply curve of bicycles. C) leftward shift of the demand curve for bicycles. D) leftward shift of the supply curve of bicycles.