Which of the Following Is an Action of Central Banks

question 69

Multiple Choice

Which of the following is an action of central banks and governments to lessen the severity of a banking crisis?

• A)establishing shadow banks
• B)guaranteeing bank deposits
• C)encouraging asset bubbles
• D)opening a liquidity trap

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Definitions:

Lease Receivable

The amount of money owed to a lessor under the terms of a lease agreement for the use of an asset.

Direct Financing Lease

A type of lease where the lessor purchases an asset and leases it out, effectively financing its purchase for the lessee, recognizing interest income over the lease term.

Unearned Interest: Leases

Interest on a lease that has been collected in advance by the lessor but not yet earned, often requiring adjustment in accounting records.

Present Value Factors

Present value factors are used to calculate the present value of a future amount of money or stream of cash flows given a specified rate of return.