This topic contains a solution. Click here to go to the answer

Author Question: The United Bank of Glassen only lent money to a limited number of big business houses. After a ... (Read 64 times)

KimWrice

  • Hero Member
  • *****
  • Posts: 579
The United Bank of Glassen only lent money to a limited number of big business houses. After a financial crisis, the bank went out of business. Which of the following reasons could have contributed to the collapse of this bank?
 a. Their decision not to lend funds to the Federal Reserve
 b. Their decision not to diversify their asset portfolio
 c. Their decision to extend loans to a diversified pool of borrowers
  d. Their decision to extend mainly short-term loans
 e. Their decision to unnecessarily scrutinize each borrower's details

Question 2

Which of the following is least likely to cause a shift of the consumption function?
 a. A change in the level of saving
 b. A change in consumer expectations about future prices
  c. A change in household wealth
 d. A change in investment spending
 e. A change in the interest rate



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

hramirez205

  • Sr. Member
  • ****
  • Posts: 345
Answer to Question 1

b

Answer to Question 2

d




KimWrice

  • Member
  • Posts: 579
Reply 2 on: Jun 30, 2018
:D TYSM


cpetit11

  • Member
  • Posts: 321
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

Blood is approximately twice as thick as water because of the cells and other components found in it.

For a complete list of videos, visit our video library