Exam 17: Crises and Consequences

What caused the banking crises in the 1990s in Finland, Sweden, and Japan?

One of the lessons learned from the 2008 financial crisis was that:

The main purpose of the Federal Reserve, which was established in 1913, was to put an end to the bank crises that occurred during the national banking era.

When the government guarantees a troubled bank's liabilities:

Monetary policy is often ineffective in a banking crisis because businesses and consumers:

Following the 2008 financial crisis, commercial banks:

Following a severe banking crisis, unemployment usually begins to decrease in a few months.

When private lenders refused to lend to the Greek government in 2009, other European countries:

After the 2008 financial crisis, proponents of austerity argued that fiscal stimulus was inappropriate because:

In a recession, the Fed usually purchases short-term government securities to decrease interest rates and increase spending.

Which of the following is an example of maturity transformation?

A vicious downward spiral among banks in which each institution's failure increases the likelihood that another will fail is a(n):

When the Fed conducts open market purchases from banks, interest rates are most likely to:

What did the panic of 1873 and the panic of 1893 have in common?

If the government guarantees liabilities of financial institutions other than deposits:

Following a severe banking crisis, the average increase in the unemployment rate is:

Greece's financial difficulties following the crisis of 2008 were due primarily to a housing bubble.

Which of the following countries was known as the Celtic Tiger during much of the 1990s and 2000s?

When shadow banks engage in maturity transformation, they raise funds by _____ and invest in _____.

During the financial crisis of 2008, the Fed: