The Pension Benefit Guaranty Corporation, which protects employee pensions for participating firms, is not a well-designed insurance program
Indicate whether the statement is true or false
T Participation by firms in the PBGC insurance program is voluntary and adverse selection operates in that the least strong firms participate while the strong firms can be better off by insuring themselves.
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Suppose that you are a bank manager, and the Federal Reserve raises the required reserve ratio from 10% to 12%. What actions would you need to take?
A. You would have to reduce lines to make up for the necessary increase in reserves B. You would need to make loans to match the new reserve requirement C. You would have to charge less for your loans because rates are now at 12%
Considering the balance sheet for all commercial banks in the U.S., the largest category of liabilities is:
A. checkable deposits. B. borrowings from non-banks in the U.S. C. borrowing from other banks in the U.S. D. saving's deposits and time deposits.