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Answer: D. The Federal Reserve Bank can provide a short-term loan to banks to prevent them from running out of money.
Explanation: The Federal Reserve Banks are set up by the nation's federal government to perform functions such as saving and keeping reserves of commercial banks and also lend to these banks when the need arises by providing short term loans. One of such situations when the Federal Reserve Banks provide short term loan cover for commercial banks include the run period which occurs when depositors concurrently withdraws their money from a bank due to perceived collapse or solvency. At this point, such bank may need help of the federal reserve bank to cover up due to simultaneous cash withdrawal request of large number of customers, thereby preventing the bank from running out of cash.
A price ceiling is a government- or group-imposed price control, or limit, on how high a price is charged for a product, commodity, or service. Governments use price ceilings to protect consumers from conditions that could make commodities prohibitively expensive. Such conditions can occur during periods of high inflation, in the event of an investment bubble, or in the event of monopoly ownership of a product, all of which can cause problems if imposed for a long period without controlled rationing, leading to shortages.[1] Further problems can occur if a government sets unrealistic price ceilings, causing business failures, stock crashes, or even economic crises. In unregulated market economies, price ceilings do not exist.
While price ceilings are often imposed by governments, there are also price ceilings which are implemented by non-governmental organizations such as companies, such as the practice of resale price maintenance. With resale price maintenance, a manufacturer and its distributors agree that the distributors will sell the manufacturer's product at certain prices (resale price maintenance), at or below a price ceiling (maximum resale price maintenance) or at or above a price floor.
Answer:
D
Explanation:
i just did the CST on A.P.E.X
Explanation:
Separation of Powers in the Central Government. One important principle embodied in the U.S. Constitution is separation of powers. To prevent concentration of power, the U.S. Constitution divides the central government into three branches and creates a system of checks and balances.
