The two kinds of banks are ________ banks and ________ banks.

If the banking system is heavily into loans supported by stock market collateral, then any downward movement in stock prices that frightens banks enough to sell off their stock collateral will drive stock prices down even further

Indicate whether the statement is true or false

Joe's Taco Hut can purchase a delivery truck for $20,000 and Joe estimates it will generate a net income (after taxes, maintenance and operating costs) of $2,000 per year. He has no other opportunities. He should:

A. purchase the truck if the real interest rate is greater than 10%. B. not purchase the truck if the real interest rate is greater than 2%. C. purchase the truck only if the real interest rate is less than 2%. D. purchase the truck if the real interest rate is less than 10%.