Author Question: ________ refers to a decrease in the willingness of banks to lend, while an impairment of the ... (Read 145 times)

piesebel

  • Hero Member
  • *****
  • Posts: 565
________ refers to a decrease in the willingness of banks to lend, while an impairment of the ability of nonfinancial firms to borrow is a consequence of ________.
 
  A) Adverse selection; moral hazard
  B) Deleveraging; debt deflation
  C) Fire sales; a bank panic
  D) The shadow banking system; agency theory

Question 2

Which of the following is true with regard to the supply of money?
 
  A) an open market sale of government securities will increase liquidity
  B) an open market purchase of government securities will decrease liquidity
  C) liquidity and the money supply are directly related
  D) all of the above
  E) none of the above



karmakat49

  • Sr. Member
  • ****
  • Posts: 369
Answer to Question 1

B

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

For a complete list of videos, visit our video library