In a recession, _, which makes _ more likely.
A) loan demand falls; bank panics
B) loan supply rises; insolvency
C) inflation rises; higher interest rates
D) unemployment rises; inflation
Correct Answer:
Verified
Q2: A fall in asset prices can lead
Q4: Which of the following triggered the Great
Q5: An asset bubble bursts if there is:
A)a
Q6: Which of the following best describes how
Q7: Generally, when there is a financial crisis,
Q8: When depositors lose confidence in a bank
Q9: All financial crises have elements of:
A)insolvency and
Q10: At its peak, unemployment hit _ during
Q11: Banks lend to:
A)one another.
B)small borrowers.
C)other financial institutions.
D)All
Q77: An illiquid bank can become insolvent when
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