The Fed may also lend to insolvent banks, rather than winding them down, in order to:
A. keep financial markets guessing about its strategy.
B. address the problem of systemic risk.
C. keep the money supply from falling too much.
D. secure politically powerful allies.
Ans: B. address the problem of systemic risk.
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Labor standards in trade are typically opposed by most developing countries who believe that they will be used
A) to further neo-imperialist colonial exploitation. B) to charge these countries with crimes against child-labor standards at the Hague. C) as a protectionist tool by import-competing producers in industrial countries. D) as a means of spreading U.S. Corporate Values and destroying local cultures. E) to hinder investment in foreign-based multinational corporations.
Overvalued exchange rates were a persistent problem under ISI policies. In part, this was a deliberate policy in order to
A) increase imports. B) discourage exports. C) help targeted industries sell their exports. D) help targeted industries buy imports. E) increase the competition for targeted industries.