Author Question: The FDIC was created because A) the Fed kept the required reserve ratio too low. B) banks failed ... (Read 19 times)

awywial · **on:** Jun 30, 2018

The FDIC was created because

A) the Fed kept the required reserve ratio too low.
B) banks failed to create money the way the Fed wanted them to.
C) people worried about bank failures after World War I, even though very few banks actually failed.
D) there were so many bank failures in the 1930s.

Question 2

As the economy enters a strong expansion in which real GDP increases, which of the following occurs?

A) The demand for money decreases and there is a movement upward along the demand for money curve.
B) The demand for money increases and there is a movement downward along the demand for money
curve.
C) The demand for money curve shifts rightward.
D) The nominal interest rate falls as the demand for money curve shifts leftward.
E) The demand for money curve shifts leftward.