Exam 11: Financial Crises

In a bank panic, the source of contagion is the ________.

If the anatomy of a financial crisis is thought of as a sequence of events, which of the following events would be least likely to be the initiating cause of the financial crisis?

What is debt deflation?

Factors that lead to worsening conditions in financial system include ________.

A ________ pays out cash flows from subprime mortgage-backed securities in different tranches, with the highest-rated tranch paying out first, while lower ones paid out less if there were losses on the mortgage-backed securities.

A(n) ________ is an increase in prices of assets above their fundamental economic values.

A decline in asset prices can lead to ________.

When regulators examine the financial system's risk incurring activities it is engaging in ________ supervision.

________ is a process of bundling together smaller loans (like mortgages) into standard debt securities.

What were some of the changes to the regulations for real estate lending that were implemented in 2012?

As housing prices rose, many subprime borrowers were able to ________.

A major shift in the US system of financial regulation in the aftermath to the financial crisis is ________.

Under the Montreal Accord, investors ________.

"Plain vanilla" assets are ________.

A bank panic can lead to a severe contraction in economic activity due to ________.

Typically, the economy recovers fairly quickly from a recession. Why did this not happen in the United States during the Great Depression?

What triggered the ABCP saga in Canada?

Agency problems in the subprime mortgage market included all of the following except ________.

Explain the reasoning behind the recommendation that capital requirements be pro-cyclical.

In Canada, an early symptom of the U.S. subprime mortgage market problem was the ________.