31.

A Credit Union is a bank owned by its depositors who are called members and they have something in common. Suppose that the Credit Union member share in common is that most of them work for the oil industry in a particular town in Texas. If the price of oil declines dramatically leading to mass layoffs in the oil industry then we may expect that

	a.	Many Credit Union borrowers may default on their loans
	b.	Many Credit Union depositors may withdraw their savings
	c.	the Credit Union may face insolvency risk
	d.	all of the above

33.

1. As a response to the 2020 virus-induced economic disruption, the Federal Reserve, lowered the Reserve Requirement for commercial banks and it resulted in

   	a.	Money supply increasing
   	b.	Money supply decreasing
   	c.	Inflation rate increasing
   	d.	Commercial Bank lending decreasing

34. For a commercial bank, to calculate its profitability we may look at

	a.	Equity Ratio
	b.	Return on assets
	c.	Return on investment
	d.	US Treasury bond holdings

36. In 2021 President Biden proposed raising long term capital gains taxes for wealthy individuals. Raising taxes by the US government is an tool of

		Monetary policy
		Fiscal policy
		Accommodation policy
		Interest rate policy

37. The Federal Reserve Dual Mandate is associated with the concept of

	a.	Financial system stability
	b.	Macroeconomic stability
	c.	Lender of Last Resort function
	d.	None of the above