Deposit insurance:
A) can increase the possibility of bank runs.
B) often makes banks more accountable for their actions and less likely to engage in risky behavior.
C) essentially serves the same function as a fractional reserve system.
D) leads depositors to be less inclined to monitor bank operations.
Correct Answer:
Verified
Q449: When banks extend loans:
A)the money supply decreases.
B)the
Q450: Between 1929 and 1933, bank deposits fell:
A)as
Q451: Fiat money is:
A)the same as commodity money.
B)money
Q452: Deposit insurance:
A)is essentially the same as a
Q453: A bank's capital is the:
A)sum of its
Q455: Debit cards:
A)are considered part of the money
Q456: Holding everything else constant, if the required
Q457: The most liquid form of money is:
A)M1.
B)M2.
C)stocks
Q458: The use of counterfeit money leads to:
A)costs
Q459: M2 is made up of:
A)M1 plus near-moneys.
B)M1
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