The Federal Deposit Insurance Corporation (FDIC):
a. insures all demand deposit accounts up to 10 million in banks choosing FDIC protection.
b. was created as a government-owned corporation following the creation of the World Bank and the International Monetary Fund after World War II.
c. rarely evaluates bank performance to detect weaknesses in operation.
d. creates monetary policy in conjunction with the Federal Reserve Board.
e. was created to reduce the risk of banking by compensating depositors and keeping bank failures from spreading.
QUESTION 2The command system relies on prices set by firms on the basis of consumer demands.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3Use the aggregate expenditures model and assume the marginal propensity to consume (MPC) is 0.80 . An increase in government spending of 1 billion would result in an increase in GDP of:
a. 0.
b. 0.8 billion.
c. 1.0 billion.
d. 5.0 billion.
e. 8.0 billion.
QUESTION 4The government agency that provides insurance for all checkable deposits up to 100,000 in banks choosing its protection is the:
a. Federal Deposit Insurance Corporation.
b. Federal Reserve.
c. Office of Management and Budget.
d. Treasury.
e. Securities and Exchange Commission.
QUESTION 5A command system uses a group of planners or central authority to make basic economic decisions.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 6In the aggregate expenditures model, a tax cut causes a(n):
a. upward shift in the aggregate expenditures curve.
b. downward shift in the aggregate expenditures curve.
c. shift in the 45-degree line.
d. rightward movement along the aggregate expenditures curve.
e. leftward movement along the aggregate expenditures curve.
QUESTION 7The Federal Deposit Insurance Corporation:
a. has eliminated bank failures.
b. insures all demand deposits without limit.
c. insures all demand deposits up to 100,000.
d. insures all demand deposits up to 10,000.
e. insures all savings and loan deposits up to 100,000.
QUESTION 8Centralized planning agencies are a key feature of command economies.
a. True
b. False
Indicate whether the statement is true or false
Quick Reply
