What is the leverage implied by the bank balance sheet listed below? $\begin{array}{c} \begin{array}{lr} \text { Assets }\\ \text { Reserves } & \$ 19,000,000 \\ \text { Loans Outstanding } & \$ 2,000,000 \\ \hline \text { Total } & \$ 21,000,000\\ \\ \\ \end{array} \begin{array}{lll} \text { Liabilities \& Net Worth }\\ \text {Checking deposits}& \$ 20,000,000\\ \\ \text { Net Worth }\\ \text {Stockholders' Equity}& \$ 1,000,000\\ \hline \text { Total}& \$ 21,000,000 \\ \end{array} \end{array}$

A) 10-to-1 B) 12-to-1 C) 20-to-1 D) 21-to-1 A) 10-to-1 B) 12-to-1 C) 20-to-1 D) 21-to-1

Exam 31: The Financial Crisis and the Great Recession

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Mortgage-backed securities became a significant issue because I.Housing prices fell across all regions. II.These securities were not as widely distributed as previously thought.

(Multiple Choice)

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Question 41

When the housing bubble burst, prices did not fall particularly severely in

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Question 42

As a result of the Great Recession, most financial markets hit bottom around

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Question 43

Borrowed funds are used in financing every component of GDP.

(True/False)

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Question 44

There is essentially no risk of default for U.S.government securities.

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Question 45

Which elements of GDP were affected by the financial crisis and the lack of available credit?

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Question 46

The central idea behind the Troubled Asset Relief Program was for the Treasury to sell mortgage-backed securities to interested investors, wait for prices to increase, and then buy these securities back for a profit.

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Question 47

As a result of the Great Recession, job growth did not resume until

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Question 48

The recession of 2007-2009 was the most severe economic downturn in the U.S.since the

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Question 49

Which of the following was not a factor that contributed to the subprime mortgage crisis?

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Question 50

The United States has not experienced a recession as severe as the 2007-2009 downturn since the 1930s.

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Question 51

Which of the following was not a lesson from the 2007-2009 financial crisis?

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Question 52

Spending on newly constructed homes is part of the investment component of GDP.

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Question 53

Which of the following was not a typical characteristic of subprime mortgages?

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Question 54

What is the leverage implied by the bank balance sheet listed below? Assets Reserves \ 19,000,000 Loans Outstanding \ 2,000,000 Total \ 21,000,000 Liabilities \& Net Worth Checking deposits \ 20,000,000 Net Worth Stockholders' Equity \ 1,000,000 Total \ 21,000,000

(Multiple Choice)

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Question 55

It would be impossible to have an unlevered bank.

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Question 56

Assume that Sharon purchases $5,000 worth of a stock.To do so she uses $1,000 of her own money and borrows the remaining $4,000 at a 7.0% interest rate.If the stock's value decreases by 10% in one year and she has to sell the stock at that time, what is her rate of return?

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Question 57

Most economists feel that overly strict financial regulation from 2000 to 2006 contributed to the financial crisis of 2007-2009.

(True/False)

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Question 58

In 2008, the Fed utilized expansionary monetary policy which was made

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Question 59

The Federal Reserve stepped in to help

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Question 60

Showing 41 - 60 of 61

Exam 31: The Financial Crisis and the Great Recession

Mortgage-backed securities became a significant issue because I.Housing prices fell across all regions. II.These securities were not as widely distributed as previously thought.

When the housing bubble burst, prices did not fall particularly severely in

As a result of the Great Recession, most financial markets hit bottom around

Borrowed funds are used in financing every component of GDP.

There is essentially no risk of default for U.S.government securities.

Which elements of GDP were affected by the financial crisis and the lack of available credit?

The central idea behind the Troubled Asset Relief Program was for the Treasury to sell mortgage-backed securities to interested investors, wait for prices to increase, and then buy these securities back for a profit.

As a result of the Great Recession, job growth did not resume until

The recession of 2007-2009 was the most severe economic downturn in the U.S.since the

Which of the following was not a factor that contributed to the subprime mortgage crisis?

The United States has not experienced a recession as severe as the 2007-2009 downturn since the 1930s.

Which of the following was not a lesson from the 2007-2009 financial crisis?

Spending on newly constructed homes is part of the investment component of GDP.

Which of the following was not a typical characteristic of subprime mortgages?

What is the leverage implied by the bank balance sheet listed below? Assets Reserves \ 19,000,000 Loans Outstanding \ 2,000,000 Total \ 21,000,000 Liabilities \& Net Worth Checking deposits \ 20,000,000 Net Worth Stockholders' Equity \ 1,000,000 Total \ 21,000,000

It would be impossible to have an unlevered bank.

Assume that Sharon purchases $5,000 worth of a stock.To do so she uses $1,000 of her own money and borrows the remaining $4,000 at a 7.0% interest rate.If the stock's value decreases by 10% in one year and she has to sell the stock at that time, what is her rate of return?

Most economists feel that overly strict financial regulation from 2000 to 2006 contributed to the financial crisis of 2007-2009.

In 2008, the Fed utilized expansionary monetary policy which was made

The Federal Reserve stepped in to help

What Is Economics?

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: The Importance of Marginal Analysis

Securities: Business Finance, and the Economy: The Tail that Wags the Dog?

The Firm and the Industry under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power: Regulation and Antitrust

The Case for Free Markets I: The Price System

The Shortcomings of Free Markets

The Market's Prime Achievement: Innovation and Growth

Externalities, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: The Human Inputs

Poverty, Inequality, and Discrimination

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation?

Bringing in the Supply Side: Unemployment and Inflation?

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Debate over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder?

Exchange Rates and the Macroeconomy

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