14.What were the reason(s) why so many US banks failed during the great Depression?

a. The central bank was on the gold standard

b. Borrowers could not pay back their loans

C. Banks were had lent to too many farmers that could not pay back

d. All the answers

e. None of the answers

15.What was the liquidationist thesis that the US government believed in at the start of the Great Depression?

a. That more water should be diverted to fight the dry conditions in the mid-west and prairies

b. That lending to banks who have problems meeting their obligations was the right thing

c. That government should let prices rise based on demand

d. All the answers

e. None of the answers

16.How can banks improve their debt to equity ratio?

a. Reduce their dividend

b. Issue or sell more bank shares

c. Securitize more mortgages

d .All the answers

e. None of the answers

18. What is the main tool(s) of central banks for financial stability?

a. Lender of last resort

b. Raising or lowering the over-night rate

c. Purchasing assets from financial institutions

d .All the answers

e. None of the answers