In the absence of regulation, banks would probably holdSeleccione una:Ⓒa. too much capital, reducing the profitability of banks.b. too little capital, increasing the return on equity.Oc. none of these.Od. too much capital, reducing the efficiency of the payments system.

This can be described as the central authority of the banking system of that particular nation. The…

Answered: In the absence of regulation, banks…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 3 How are purchases or sales of foreign currency by a central bank are related to monetary policy? OA. a purchase of foreign currency will increase money supply B. a purchase of foreign currency will reduce the nominal exchange rate C. a purchase of foreign currency will reduce money supply O D. a purchase of foreign currency will increase the nominal exchange rate
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Financial capital includes A. money, stocks, and bonds, which are capital because they provide businesses with financial resources O B. money, stocks, and bonds, which are not capital because they are not used to produce goods and services O C. banks and credit unions, which are capital because they are used to produce financial services O D. the nation's banking system, which is capital because it is the backbone of the economy

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In the absence of regulation, banks would probably hold Seleccione una: a. too much capital, reducing the profitability of banks. b. too little capital, increasing the return on equity. OC none of these. Ⓒd. too much capital, reducing the efficiency of the payments system.