Crowding-Out Is

question 100

Multiple Choice

Crowding-out is:

• A) the first time a corporation sells stock to the public in order to raise capital.
• B) a sophisticated IOU that documents who owes how much and when payment must be made.
• C) something of value that by agreement becomes the property of the lender if the borrower defaults.
• D) the decrease in private consumption and investment that occurs when government borrows more.

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Definitions:

U.S. Mint

A bureau of the Department of the Treasury responsible for producing coinage for the United States.

Federal Reserve

The central banking system of the United States, responsible for implementing monetary policy, supervising banks, and providing financial services.

Large-Denomination Time Deposits

High-value deposits made in a bank or financial institution with a fixed term and interest rate, typically not accessible before maturity without penalty.

Money Market Deposit Accounts

Interest-bearing accounts offered by banks with typically higher interest rates than savings accounts, with certain restrictions.