During the height of the euro-are crisis, deposits at the ECB's deposit facility surged above €800 billion because:
A. euro area commercial banks preferred the safety of deposits at the central bank.
B. euro area commercial banks preferred lending to other commercial banks.
C. euro area commercial banks were compelled to increase deposits by ECB policy changes.
D. the deposit rate increased.
Answer: A
You might also like to view...
A more efficient means of processing tree bark to produce an anticancer drug is discovered. As a result, the supply curve for the drug will:
a. shift to the right, increasing the price of the drug. b. shift to the left, increasing the price of the drug. c. shift to the right, decreasing the price of the drug. d. shift to the left, decreasing the price of the drug.
A firm realizes that the market price has fallen below its average total costs, and it is now earning a loss. What is the best action for the firm to take in the short run?
A. Shut down if price is greater than average variable costs. B. Produce where MC = MR to minimize losses if P < AVC. C. Shut down if total revenue is less than fixed costs. D. Produce where MC = MR to minimize losses if P > AVC.