Which of the Following Is Frequently Cited as a Major

question 71

Multiple Choice

Which of the following is frequently cited as a major contributor to the financial crisis of 2008?

• A)The absence of depositor insurance, which could have bolstered customer confidence
• B)Individuals and financial institutions borrowing excessively to finance investments
• C)Lack of governmental efforts to stem the distress along with non-existent financial aids to banks
• D)Excessive transfer payments made by the government
• E)Excessive government spending on defense

Understand the impact of labor laws and regulations on labor practices such as monopsonies, closed shops, and right to work laws.

Recognize the historical context and significance of the most disruptive strikes in labor history.

Evaluate the reasons behind the shifts in workforce from manufacturing to service industries and their effect on unionization.

Distinguish between the concepts of pure monopoly, monopsony, and how they relate to labor unions and collective bargaining.

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Definitions:

Total Reserves

The sum of a bank's deposits held at the central bank and the cash held in vaults.

Checkable Deposits

Refers to deposits in bank accounts from which individuals can write checks or use debit cards to make purchases directly.

Required Reserves

The minimum amount of funds that a bank must hold in reserve against deposits, as mandated by central banking regulations.

Money Supply

Refers to the total amount of money—cash, coins, and balances held in checking and savings accounts—available within an economy at a specific time.