Unpredictable Shocks to the Financial System

question 5

Multiple Choice

Unpredictable shocks to the financial system

• A)increase the demand for money.
• B)affect small depositors more so than large depositors.
• C)reduce the demand for money.
• D)result in money neutrality.
• E)cause consumers and firms to switch to credit cards.

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Definitions:

Crimes

Acts or omissions that violate laws which are enforceable by the government and are punishable by fines, imprisonment, or other sanctions.

Criminal Law

The body of law that relates to crime and prescribes conduct perceived as threatening, harmful, or otherwise endangering to the property, health, safety, and moral welfare of people.

Compensate

To make amends for loss or harm suffered; to pay or reimburse someone for damages or losses incurred.

Victims

Individuals or entities that have suffered harm, injury, or loss as a result of another's actions or omissions, often leading to a legal claim for damages.