Exam 9: Financial Crises

U.S. firms affected by the financial crisis included ________.

A substantial decrease in the aggregate price level that reduces firms' net worth may stall a recovery from a recession. This process is called ________.

Debt deflation occurs when ________.

What triggered the ABCP saga in Canada?

Mortgage brokers often did not make a strong effort to evaluate whether the borrower could pay off the loan. This created a ________.

Although the subprime mortgage market problem began in the United States, the first indication of the seriousness of the crisis began in ________.

How do increases in interest rates play a role in promoting financial crises?

When regulators examine a financial institution's capital ratios it is engaging in ________ supervision.

The dark side of financial liberalization is ________.

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

Government safety nets ________.

When there is a deterioration in financial institutions' balance sheets ________.

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

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

Financial crises ________.

The housing boom in the United States was aided by ________.

The too-big-to-fail problem is a ________ problem.

The recognition that increased availability of credit leading to higher asset prices and financial buffers at lending institutions and therefore further expansion of credit availability is referred to as ________.

Banking crises or bank panics have started when ________.

The government bailout of troubled financial institutions occurred in the U.S. and many other countries. Which country saw their banking system collapse requiring the government to take over its three largest banks?