Exam 10: The Great Recession: a First Look

When all depositors converge on a bank to remove their deposits there is a:

Short-run output __________ in the last quarter of 2008 and __________ by the middle of 2009.

Bank leverage is equal to a bank's assets minus its liabilities.

In 2009,the Congressional Budget Office projected the debt-to-GDP ratio to __________ over the next decade.

In 2009 China and India both experienced positive economic growth while the rest of Asia,Europe,and the United States experienced negative economic growth.

In 1933 the __________ was established to prevent bank runs;in 2008 the __________ was set up to increase liquidity in financial markets.

In mid-2008 oil prices:

-Consider Figure 10.2 Which of the series is likely to be inflation? Which is core inflation? What is the cause of the sharp increases and decreases in the line with triangles?

Which of the following countries did the financial crisis affect?

In September 2008,the government took control of Lehman Brothers,and Fannie Mae and Freddie Mac were sold to the Bank of America.

The acronym "CDO" stands for:

The Case-Shiller index of housing prices dropped about 10 percent when the housing bubble burst.

For the following questions use the information in Table 10.1,which shows real GDP and potential real GDP for the years 2001-2010. -According to the data in Table 10.1,during which years was the economy in an expansion?

The federal funds rate is the rate the Fed charges to member banks.

According to The Economist,in 2006 approximately one-half of all home loans were subprime.

In the trough of the Great Recession,real GDP was about 5 percent below potential real GDP.

Loans,investments,and cash are on the asset side of a bank's balance sheet.

The global savings glut can be defined as:

What declined during the Great Recession?

The __________ was hastily designed to __________ in September 2008.