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Author Question: Pooling of risk occurs when depository institutions A) make assets more liquid. B) specialize in ... (Read 51 times)

crazycityslicker

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on: Jun 29, 2018
Pooling of risk occurs when depository institutions
 
  A) make assets more liquid.
  B) specialize in loaning only to good borrowers.
  C) bring lenders together.
  D) lend to a variety of different borrowers.

Question 2

If the government begins to run a larger budget deficits, then assuming there is no Ricardo-Barro effect, the demand for loanable funds ________ and the real interest rate ________.
 
  A) decreases; falls
  B) decreases; rises
  C) increases; rises
  D) increases; falls


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lolol

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

C


crazycityslicker

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Reply 2 on: Jun 29, 2018
Excellent

gcook

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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