Governments Imposing Negative Nominal Interest Rates Are Attempting to

question 107

Multiple Choice

Governments imposing negative nominal interest rates are attempting to

• A)discourage the use of banks.
• B)compete with private banks in the lending market.
• C)discourage consumption and encourage saving.
• D)encourage consumption by discouraging saving.

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Definitions:

Federal Trade Commission Act

A U.S. federal law established in 1914 to promote consumer protection and eliminate and prevent anticompetitive business practices.

Material Misrepresentation

An untrue assertion of fact by one individual to another that leads to the latter being persuaded into a agreement.

Affirmative Disclosure

The requirement for parties, especially in commercial transactions, to proactively share relevant information, rather than merely avoiding falsehoods.

FTC

The Federal Trade Commission, a United States government agency established to protect consumers and ensure a strong competitive market by enforcing antitrust and consumer protection laws.