Banking panics are especially dangerous because:
A. they can lead to other panics, such as retail panics.
B. the government will respond by seizing all banking assets.
C. they can start easily and spread quickly.
D. the banking sector employs about 25% of workers in the United States.
Ans: C. they can start easily and spread quickly.
You might also like to view...
Joanne left her last job, in which she was earning $50,000, in order to form her own consulting business. Her revenues for the first year of consulting were $200,000
During that year, she hired two assistants for $25,000 each and spent $25,000 on office equipment. In addition, she incurred $75,000 in miscellaneous expenses. Her economic profit that first year was A) $0. B) $50,000. C) $200,000. D) $75,000.
The main reason(s) firms in a competitive market cannot earn positive profits in the long run is(are)
a. assets can quickly move in and out of the industry when demand fluctuates b. an increase in demand leads to entry of firms which absorb the extra demand c. a decrease in demand leads to exit of firms from the market such that there is no surplus d. all of the above