Between 1930 and 1933, many banks in the U.S. failed because:
a. the FDIC moved too slowly to prevent the bank failures.
b. most bankers were either corrupt or incompetent.
c. of excessive regulation by the federal government.
d. people shifted their funds to take advantage of rising stock market prices.
e. people lost confidence in them.
QUESTION 2Between 1959 and 2003, the average annual growth rate of real GDP per capita in the United States was about _____.
a. 0.1 percent per year
b. 2.2 percent per year
c. 6.7 percent per year
d. 9.3 percent per year
e. 15 percent per year
QUESTION 3Deregulation, especially for the transportation and telecommunication industries, was the trend in the United States during the:
a. 1930s.
b. 1950s.
c. 1970s.
d. 1980s.
QUESTION 4A lender of last resort is a financial institution that is willing and able to lend to:
a. individuals who have other debts outstanding.
b. individuals who do not have a positive net worth.
c. banks that are not members of the Federal Reserve System.
d. fractional reserve system banks experiencing runs on their deposits.
e. Federal Reserve System member banks experiencing runs on their deposits.
QUESTION 5If per capita GDP growth exceeds labor productivity growth, then:
a. human capital must be increasing.
b. the laborcapital ratio must be decreasing.
c. employment must be growing faster than population.
d. population must be growing faster than employment.
e. physical capital must be increasing.
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