Which of the following is a macroeconomic factor that contributed to the financial crisis in 2007?
A) Global saving and investment imbalances
B) Financial market innovation
C) Deeper levels of integration across financial markets
D) Challenges and failures in financial regulation
A
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Suppose the government imposes a price ceiling that is lower than the equilibrium price. Discuss the effect, if any, on the price and quantity if the government later removes the price ceiling
What will be an ideal response?
A commercial bank holds $500,000 in demand deposit liabilities and $120,000 in reserves. If the required reserve ratio is 20 percent, which of the following is the maximum amount by which this single commercial bank and the maximum amount by which the banking system can increase loans?
a) amount created by single bank = $5,000 and amount created by banking system = $25,000 b) acsb=$20,000 and acbs=$80,000 c) acsb=$20,000 and acbs=$100,000 d) acsb=$0,000 and acbs=$150,000 e) acsb=$120,000 and acbs=$500,000