Question 1

According to the IMF,which of these countries experienced positive growth in 2009?

Accepted Answer

A) India 
B) the United States 
C) China 
D) Germany 
E) a and c 
A) India 
B) the United States 
C) China 
D) Germany 
E) a and c

Question 2

In a typical recession,the only __________ expenditure rises.

Accepted Answer

A) investment 
B) exports 
C) imports 
D) inflation 
E) government 
A) investment 
B) exports 
C) imports 
D) inflation 
E) government

Question 3

Briefly discuss the macroeconomic outcomes of the financial crisis.

Accepted Answer

The answer of Briefly discuss the macroeconomic outcomes of the...

Question 4

In the months following the collapse of Lehman Brothers,banks became increasingly worried about:

Accepted Answer

A) rising real estate prices. 
B) lending money via commercial paper. 
C) the rapid loss of reserves. 
D) spikes in the federal funds rate. 
E) exchange rate volatility. 
A) rising real estate prices. 
B) lending money via commercial paper. 
C) the rapid loss of reserves. 
D) spikes in the federal funds rate. 
E) exchange rate volatility.

Question 5

When a bank's assets cannot cover its liabilities,the bank is:

Accepted Answer

A) illiquid. 
B) nationalized. 
C) immediately shut down. 
D) bought out by its shareholders. 
E) insolvent. 
A) illiquid. 
B) nationalized. 
C) immediately shut down. 
D) bought out by its shareholders. 
E) insolvent.

Question 6

For the following questions use the information in the followingtable.  
-Given the information in Table 10.2,what is the approximate leverage ratio of this bank?

Accepted Answer

A) 4.80 
B) 1.21 
C) 5.80 
D) 0.83 
E) not enough information 
A) 4.80 
B) 1.21 
C) 5.80 
D) 0.83 
E) not enough information

Question 7

For the following questions use the information in the followingtable.  
-Given the information in Table 10.2,the banks' net worth is equal to:

Accepted Answer

A) $3,400. 
B) -$2,000. 
C) $2,000. 
D) -$700. 
E) not enough information 
A) $3,400. 
B) -$2,000. 
C) $2,000. 
D) -$700. 
E) not enough information

Question 8

Part of the rapid increase in oil prices was due to __________.

Accepted Answer

A) declining demand in OECD countries 
B) falling supplies from OPEC countries 
C) lower inflation expectations in the United States 
D) the financial meltdown 
E) increasing demand in China 
A) declining demand in OECD countries 
B) falling supplies from OPEC countries 
C) lower inflation expectations in the United States 
D) the financial meltdown 
E) increasing demand in China

Question 9

Between May 2004 and May 2006,the Fed raised the federal funds rate by 4 percentage points due to rising inflation worries.

Accepted Answer

A) True 
 B)False

Question 10

Which country did not experience a financial crisis in the 1990s?

Accepted Answer

A) Mexico 
B) Russia 
C) Asia 
D) Saudi Arabia 
E) Argentina 
A) Mexico 
B) Russia 
C) Asia 
D) Saudi Arabia 
E) Argentina

Question 11

In addition to oil price increases in 2008,

Accepted Answer

A) natural gas prices fell. 
B) the interest rate premium fell. 
C) commodity prices also rose. 
D) inflation remain unchanged. 
E) aggregate supply increased. 
A) natural gas prices fell. 
B) the interest rate premium fell. 
C) commodity prices also rose. 
D) inflation remain unchanged. 
E) aggregate supply increased.

Question 12

Which of the following is not an asset on a bank's balance sheet?

Accepted Answer

A) loans 
B) deposits 
C) cash 
D) reserves 
E) investments 
A) loans 
B) deposits 
C) cash 
D) reserves 
E) investments

Question 13

Which of the following is not a securitized asset?

Accepted Answer

A) mortgage-backed securities 
B) asset-backed commercial paper 
C) collateralized debt obligations 
D) commercial bonds 
E) CDOs 
A) mortgage-backed securities 
B) asset-backed commercial paper 
C) collateralized debt obligations 
D) commercial bonds 
E) CDOs

Question 14

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,when was the recession deepest?

Accepted Answer

A) 2001 
B) 2003 
C) 2009 
D) 2008 
E) not enough information 
A) 2001 
B) 2003 
C) 2009 
D) 2008 
E) not enough information

Question 15

The increased spread between three-month LIBOR and three-month bond yields led to __________.This is a classic example of __________.

Accepted Answer

A) reduced lending;a liquidity crisis 
B) a rush to buy bonds;an asset bubble 
C) falling risk in financial markets;risk sharing 
D) increased inflationary expectations;cost push inflation 
E) increased consumer expenditure;the monetary transmission mechanism 
A) reduced lending;a liquidity crisis 
B) a rush to buy bonds;an asset bubble 
C) falling risk in financial markets;risk sharing 
D) increased inflationary expectations;cost push inflation 
E) increased consumer expenditure;the monetary transmission mechanism

According to the IMF,which of these countries experienced positive growth in 2009?

In a typical recession,the only __________ expenditure rises.

Briefly discuss the macroeconomic outcomes of the financial crisis.

In the months following the collapse of Lehman Brothers,banks became increasingly worried about:

When a bank's assets cannot cover its liabilities,the bank is:

For the following questions use the information in the followingtable. -Given the information in Table 10.2,what is the approximate leverage ratio of this bank?

For the following questions use the information in the followingtable. -Given the information in Table 10.2,the banks' net worth is equal to:

Part of the rapid increase in oil prices was due to __________.

Between May 2004 and May 2006,the Fed raised the federal funds rate by 4 percentage points due to rising inflation worries.

Which country did not experience a financial crisis in the 1990s?

In addition to oil price increases in 2008,

Which of the following is not an asset on a bank's balance sheet?

Which of the following is not a securitized asset?

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,when was the recession deepest?

The increased spread between three-month LIBOR and three-month bond yields led to .This is a classic example of .

Introduction to Macroeconomics

Measuring the Macroeconomy

An Overview of Long- Run Economic Growth

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market,wages,and Unemployment

Inflation

An Introduction to the Short Run

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

Exam 10: The Great Recession: a First Look

According to the IMF,which of these countries experienced positive growth in 2009?

In a typical recession,the only __________ expenditure rises.

Briefly discuss the macroeconomic outcomes of the financial crisis.

In the months following the collapse of Lehman Brothers,banks became increasingly worried about:

When a bank's assets cannot cover its liabilities,the bank is:

For the following questions use the information in the followingtable. -Given the information in Table 10.2,what is the approximate leverage ratio of this bank?

For the following questions use the information in the followingtable. -Given the information in Table 10.2,the banks' net worth is equal to:

Part of the rapid increase in oil prices was due to __________.

Between May 2004 and May 2006,the Fed raised the federal funds rate by 4 percentage points due to rising inflation worries.

Which country did not experience a financial crisis in the 1990s?

In addition to oil price increases in 2008,

Which of the following is not an asset on a bank's balance sheet?

Which of the following is not a securitized asset?

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,when was the recession deepest?

The increased spread between three-month LIBOR and three-month bond yields led to __________.This is a classic example of __________.

Introduction to Macroeconomics

Measuring the Macroeconomy

An Overview of Long- Run Economic Growth

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market,wages,and Unemployment

Inflation

An Introduction to the Short Run

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

The increased spread between three-month LIBOR and three-month bond yields led to .This is a classic example of .