QUESTION 39 The nominal anchor _____. prevents bank panics helps promote price s
ID: 2774554 • Letter: Q
Question
QUESTION 39
The nominal anchor _____.
prevents bank panics
helps promote price stability
means banks that should fail stay in business
are used more frequently to raise capital
None of the above
1 points
QUESTION 40
The Federal Reserve System was set up with 12 regional Federal Reserve banks because ___.
13 banks would be an unlucky number
it was the best number the committee could agree upon
of the than traditional American hostility to a central bank and centralized authority
All of the above
1 points
QUESTION 41
A prevalant feature of debt contracts for both households and businesses is ___.
dividend payments
collateral
the going concern concept
prevents bank panics
helps promote price stability
means banks that should fail stay in business
are used more frequently to raise capital
None of the above
Explanation / Answer
Solutions :
39.
The nominal anchor " helps promote price stability"
Nominal Anchor is the measure adopted by the government to bring out the stability in the economy. For example : In case of uncertainty in exchange rate , The government will pledged its reserves of Foreign exchange to reduce the uncertainty and bring the stability in the economy
40.
The Federal Reserve System was set up with 12 regional Federal Reserve banks because " of the than traditional American hostility to a central bank and centralized authority "
41.
A prevalant feature of debt contracts for both households and businesses is " Collateral". The Debt contracts are often attached with the collateral to ensure the recovery of payment in case of failure to service interest payment by households and businesses.