A reserve currency is a currency that is:
a. used exclusively to settle domestic debts.
b. specifically designed for use by commercial banks to settle accounts.
c. held only by bureaucrats.
d. used to settle international debts by private corporations.
e. held by governments to facilitate foreign exchange market interventions.
e
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In the ten year period 1981-1990, 1202 commercial banks were closed, with a peak of 206 failures in 1989. This rate of failures was approximately ________ times greater than that in the period from 1934 to 1980
A) two B) three C) five D) ten
Which of the following correctly describes the Lorenz curve??
A. ?The Lorenz curve shows that the increasing income inequality in the U.S. society is actually good for the economy. B. The Lorenz curve shows the growth rate in real median family income over time. C. ?The Lorenz curve shows the cumulative distribution of family income, ranked from the poorest to the richest families, and compares that curve with the straight line indicating perfectly equal income distribution. D. ?The Lorenz curve shows the cumulative distribution of family income, ranked from the richest to the poorest families, and compares that curve with the ideal of having all income go to the richest 5 percent of society.