Which of the following would most likely reduce the number of bank failures?
a. an increase in the number of small banks
b. tighter restrictions on interstate banking
c. creating a system of deposit insurance
d. encouraging banks to make more risky loans
Question 2
Monetarists think that the government:
a. should take an active role in the economy.
b. should change the money supply growth rate regularly to achieve low inflation.
c. should actively intervene in the economy, but only by decreasing the fiscal expenditure.
d. should intervene in the economy as little as possible.
e. should consciously set out to achieve full employment.