Feature of debt contracts for both households-businesses

Assignment Help Financial Management

Reference no: EM13876060

1. The nominal anchor _____.

prevents bank panics

helps promote price stability

means banks that should fail stay in business

are used more frequently to raise capital

None of the above

2. The Federal Reserve System was set up with 12 regional Federal Reserve banks because ___.

13 banks would be an unlucky number

it was the best number the committee could agree upon

of the than traditional American hostility to a central bank and centralized authority

All of the above

3. A prevalant feature of debt contracts for both households and businesses is ___.

dividend payments

collateral

the going concern concept

Reference no: EM13876060

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