Exam 17: Crises and Consequences

In a credit crunch, interest rates are unusually low.

A shadow bank engages in maturity transformation by:

A banking crisis occurs:

To stabilize the banking crisis in Ireland the:

The primary reason for Lehman Brothers' bankruptcy in September 2008 was its investment in:

When the central bank acts as a lender of last resort, it:

After the 2008 financial crisis, proponents of fiscal austerity argued that the primary problem for the United States and Europe was:

Before the Great Depression in the 1930s, the government:

Receipts for gold and silver deposited with goldsmiths became one of the first forms of paper money.

If a financial institution is systemically important:

Subprime mortgages:

If the government guarantees not only the deposits but also the other liabilities of a failing bank, the government usually:

Which of the following is designed to prevent bank runs?

Without banks, people would:

In a banking crisis, banks usually:

During the 2008 and 2011 financial crises in Spain and Italy, the spread between the interest rates on 10-year bonds issued by the governments of Italy and Spain and the interest rates on 10-year bonds issued by _____ was a measure of risk.

The "wholesale" funding that Irish banks used for real estate loans came primarily from:

Following the 2008 financial crisis, by 2011, almost half of unemployed workers were long-term unemployed.

In a banking crisis, banks are likely to hold more excess reserves than usual.

The bill that Congress passed in 2010 to correct many of the problems that led to the 2008 financial crisis was called: