Author Question: ________ refers to a decrease in the willingness of banks to lend, while an impairment of the ... (Read 77 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 the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

For a complete list of videos, visit our video library