Suppose there is a bank panic. Which of the following would not be a consequence of this bank panic?
A) Individual banks would have to shrink the value of loans they made.
B) The economy would likely enter into a recession.
C) Bank total reserves would decrease.
D) Bank checking account balances would decrease.
E) Required reserves would increase.
E
You might also like to view...
In an open economy, injections and leakages are related as:
A) I + G = S + T. B) I + G + X = S + T + M. C) X + G = T + M. D) none of the above
Alchemy was the attempt to discover a process by which base metals, such as lead, could be turned into gold. If an alchemist had been successful,
A) all the lead in the world would have been added to the world's gold supply. B) all the lead in the world would have replaced the world's gold supply. C) all the lead in the world would only have been added to the world's gold supply when it was converted to gold. D) the alchemist would likely have been killed by the owners of real gold.