Exam 9: Financial Crises

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

A bank loan to a household or business was not a security because ________.

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?

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

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

Between October 2007 and March 2009, asset prices in the stock market fell by ________.

The Irish government helped mitigate the financial crisis by ________.

The originate-to-distribute business model is when ________.

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

The Dodd-Frank Act of 2010 requires financial institutions to ________.

How can asymmetric information lead to a bank panic?

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

The "democratization of credit" was attributed to ________.

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

Credit market problems of adverse selection and moral hazard increased as a result of all of the following except ________.

If debt contracts are of fairly long maturity, then an unanticipated decline in the aggregate price level results in ________.

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

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 ________.

A sharp decline in the stock market means that the ________ of corporations has fallen making lenders ________ willing to lend.

A decline in asset prices can lead to ________.