36. Which of the following is a necessary but not a sufficient condition for a bank run
(A) A bank’s liabilities exceed its assets.
(B) A bank does not have enough reserves to cover a surge in depositor demands.
(C) A recession occurs, meaning that people need to liquidate their assets.
(D) Everyone rushes to the bank to withdraw their deposits, which have been mostly
37. You are the sole shareholder in a bank, with limited liability. The bank currently
has deposits of $800,000, and assets of $200,000. If the bank fails tomorrow, how much
would you owe the bank’s creditors?
38. Which of the following is NOT a problem with barter?
(A) Double coincidence of wants.
(B) Gift exchange.
(C) Cost of storing goods.
(D) No universal standard of value.
39. In 1933, President Franklin Delano Roosevelt signed Executive Order 6102, banning
Americans from holding more than 4 ounces of gold in their possession. Americans who
turned in their gold to the government were given $20.67 per ounce of gold. The next
year, Roosevelt signed the Gold Reserve Act into law, which changed the price of gold
from $20.67 per ounce to $35 per ounce. What was the direct effect of this?
(A) A monetary stimulus that enabled the United States of America to escape from
The Great Depression.
(B) A shift of gold reserves to the United States, as countries militarized.
(C) An end to the risk of bank runs, which had been plaguing the United States in the
leadup to the Great Depression.
(D) A transfer of wealth from private citizens to the government.