Exam 17: Crises and Consequences

Depository banks borrow from depositors primarily on a _____ basis and lend to others on a _____ basis.

Financial problems began in Greece in late 2009, when:

Describe the financial contagion that occurred during the Irish banking crisis in 2008.

What did the panic of 1893 in the United States and the Swedish banking crisis of 1991 have in common?

An increase in the spread between interest rates on10-year bonds of Italy and Spain and interest rates on 10-year bonds of Germany indicates:

The slow recovery from the 2008 financial crisis meant that the unemployment rate:

When borrowers don't respond to short-term interest rates of zero, the economy is in:

The national banking era was the period:

A bank run can result in bank failure because banks keep only a small fraction of their depositors' funds in the bank vault and are therefore unable to meet their customers' demands for their money.

Under the Dodd-Frank Act of 2010, derivatives:

In general, the higher the rate of return on an asset, the lower its liquidity.

Debt overhang often causes a recession because businesses and consumers with a _____ level of debt _____ their spending.

A shadow bank may be subject to a bank run if:

Which of the following is a shadow bank?

The banking panics in 1873 and 1893 were caused by:

In a severe financial crisis, if the public fears that a bank's assets aren't worth enough to cover its debts, a lender of last resort is not likely to be able to prevent bankruptcy of the bank.

The threat of a second European financial crisis in 2011 and 2012 was due primarily to problems with:

To put an end to the bank failures during the 1930s President Franklin Roosevelt declared a bank holiday and temporarily closed all banks.

Most of a bank's short-term liabilities are:

Since the 1930s, following banking crises, if financial institutions are not able to borrow in private credit markets: