In Response to the Destructive Bank Panics of the Great

question 111

Multiple Choice

In response to the destructive bank panics of the Great Depression,future bank panics are designed to be prevented by

• A)the Federal Reserve System acting as a lender of last resort.
• B)the Federal Reserve System conducting open market operations.
• C)the establishment of the Federal Deposit Insurance Corporation.
• D)establishing a fractional reserve system of banking.
• E)increasing the required reserve ratio to 100%.

---

Definitions:

Pricing Policy

A strategic approach adopted by a company to set the cost of its products or services, often considering factors like market demand, production costs, and competition.

Linear Programming

A mathematical technique used for optimizing operations, focusing on achieving the best outcome in a model with linear relationships.

Constraint Lines

Limitations or bottlenecks within a production process that restrict the flow of production or services.

Objective Function

A mathematical equation used in optimization to represent the goal of an operation, often aiming to maximize or minimize some aspect of the system.