Tax Wedge

In 2015, some banks in Europe had to make interest payments to borrowers rather than receive interest payments from borrowers. Which of the following statements describes this situation?

A) For these banks, the loans increased required reserves. B) For these banks, the loans were liabilities instead of assets. C) These banks were receiving negative nominal interest rates on these loans. D) All of the above are correct.

Workers who dislike risk

A) prefer to be paid a salary rather than a wage. B) prefer a salary system to a commission compensation system. C) prefer to be paid monthly rather than weekly or daily. D) prefer a piece-rate compensation system to a salary system.