Exam 12: Financial Crises

A major disruption in financial markets characterized by sharp declines in asset prices and firm failures is called a

A serious consequence of a financial crisis is

The Dodd-Frank legislation of 2010 permanently increased the federal deposit insurance to

As "haircuts" increased during 2007-2009,financial institutions found that to borrow the same loan amount now required ________ collateral.

Dodd-Frank addressed many of the issues that led to the financial crisis. Which of the following was NOT addressed by Dodd-Frank regulations?

One suggested method of dealing with the too-big-to-fail problem is to reimpose the restrictions that were in place under

If a borrower takes out a $200 million loan in a repo agreement and is asked to post $220 million of mortgage-backed securities as collateral,the "haircut" is

If mortgage brokers do not make a strong effort to evaluate whether the borrower can pay off a loan,this creates a

Which investment bank filed for bankruptcy on September 15,2008 making it the largest bankruptcy filing in U.S. history?

When financial intermediaries deleverage,firms cannot fund investment opportunities resulting in

A possible sequence for the three stages of a financial crisis might be ________ leads to ________ leads to ________.

During the banking crisis of the Great Depression,more than ________ of all commercial banks in the United States failed.

Debt deflation occurs when

During the "Great Recession" unemployment rates in the United States increased to

When housing prices began to decline after their peak in 2006,many subprime borrowers found that their mortgages were "underwater." This meant that

In a bank panic,the source of contagion is the

When asset prices rise above their fundamental economic values,a(n)________ occurs.

The economy recovers quickly from most recessions,but the increase in adverse selection and moral hazard problems in the credit markets caused by ________ led to the severe economic contraction known as The Great Depression.

When the value of loans begins to drop,the net worth of financial institutions falls causing them to cut back on lending in a process called

The Dodd-Frank bill created an agency to monitor markets for asset price bubbles and the buildup of systemic risk. This agency is called the