Exam 17: Crises and Consequences

When private lenders learned the size of Greece's budget deficits and debt in 2009, they:

During the early 1930s, approximately _____ of the banks in the United States failed.

Which of the following is NOT a reason banking crises usually lead to recessions?

Lehman Brothers was established by Henry Lehman in 1844 as a(n):

In debt overhang consumers' debt level is diminished and the value of their assets has increased.

Fiscal stimulus is:

During the credit crunch in the Great Depression, the spread-the interest rate on Baa corporate bonds minus the interest rate for government borrowing:

Explain the two main causes of banking crises.

Severe banking crises are usually followed by deep recessions and slow recoveries.

In A Monetary History of the United States, Friedman and Schwartz argued that:

When the Fed acts as a lender of last resort, it lends money to homeowners who are in danger of losing their home through foreclosure.

All of the following are regulations designed to prevent bank runs EXCEPT:

Policy for dealing with banking crises changed from laissez-faire to taking steps to contain the damage from bank failures:

Before the 2008 financial crisis, shadow banks were:

The effect of the harsh budget cuts required by the European countries who made emergency loans to Greece in 2011 was:

During the 2008 financial crisis:

The European debt crisis in 2011 began with:

To put an end to the vicious cycle of bank failures during the early 1930s:

One of the elements addressed in the Dodd-Frank bill was authority over nonbank financial institutions that face bankruptcy.

The recession that began in 1929 turned into the Great Depression primarily because of: