As the Recession in the Euro Area Appeared to End

question 39

Multiple Choice

As the recession in the euro area appeared to end on mid-2009, to address a perceived weakness in the Irish banking system, the Irish government did what?

• A)It decreed that all debts of Irish banks were being canceled.
• B)It decreed that Irish banks would thereafter pay not more than 3 percent per annum on deposits.
• C)It decreed that it would loan Irish banks the equivalent of 3 billion U.S.dollars.
• D)It decreed that the Irish government would guarantee all deposits and debts of the largest Irish banks.

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Definitions:

Fire Extinguishers

Devices designed to extinguish or control small fires, often in emergency situations.

Total Benefit

The sum of all the advantages or gains obtained from a certain action or investment.

Externalities

Economic side effects or consequences that affect someone other than the buyer or seller, can be positive or negative.

Incentives

Motivations or rewards that influence the actions and behaviors of individuals or organizations.