In Return for Injecting Capital into Banks, the U

question 222

Multiple Choice

In return for injecting capital into banks, the U.S. government received:

• A)deposits at the bank.
• B)loans at an interest rate below the prime rate.
• C)bonds issued by the bank.
• D)shares of stock in the bank.

Recognize the importance of investment in accumulating capital goods.

Understand the scientific method's application to economics and its relevance in studying human behavior.

Understand the broad categories of economic resources and their examples.

Comprehend the concepts of marginal analysis and opportunity costs in economic decision-making.

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Definitions:

Balance Of Payments

A record of all financial transactions between a country and the rest of the world.

Capital Account

In economics, part of a nation's balance of payments that records all transactions involving the purchase and sale of assets such as stocks, bonds, and real estate.

Financial Accounts

Records that track the financial activities and situation of an entity, including assets, liabilities, equity, income, and expenses.

Surplus

The amount by which the quantity of a good or service supplied exceeds the quantity demanded at a specific price.