Exam 17: Crises and Consequences

Greece's economy accounts for _____ of European GDP.

Shadow banks are prohibited from engaging in maturity transformation.

Expansionary fiscal measures, such as more government spending and tax cuts designed to reduce unemployment, are called:

According to the Dodd-Frank bill, shadow banks:

Following the financial crisis of 2008, commercial banks relied heavily on the Fed as a lender of last resort, borrowing approximately $700 billion.

Following the banking crises of the early 1930s real GDP _____ and the price level _____.

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

Fiscal stimulus is expansionary fiscal measures, such as increases in government spending and decreases in taxes, designed to reduce unemployment.

Which of the following is an action of central banks and governments to lessen the severity of a banking crisis?

For much of the 1990s and 2000s, Ireland, known as the Celtic Tiger, grew faster than the rest of Europe.

After the 2008 financial crisis, policy makers realized that the scope of banking regulation was:

One problem with holding money as an asset is that it doesn't earn any income.

Ireland's rapid growth came to a halt in 2008 because:

Contractionary fiscal measures, such as less government spending and tax increases designed to reduce budget deficits, are called:

Almost all major economies faced high unemployment and low growth following the 2008 financial crisis.

In the United States during the time between the Civil War and the Great Depression:

The advantage of holding money as an asset is that it is perfectly liquid.

Loans to home buyers who do not qualify for a standard mortgage are called _____ mortgages.

The Wall Street Reform and Consumer Protection Act of 2010 addressed all of the following EXCEPT:

During most of the 1990s and 2000s, Ireland was called: