Exam 29: Crises and Consequences

The asset bubble that caused the savings and loan crisis of the 1980s was in:

Commercial banks _____, while investment banks _____.

As a consequence of the Irish banking crisis:

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

The bill that Congress passed in 2010 to correct many of the problems that led to the 2008 financial crisis was called:

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

According to the Dodd-Frank bill, shadow banks:

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

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

Before 2010 and passage of Dodd-Frank, shadow banks offered their customers a higher rate of return than commercial banks because shadow banks _____, but commercial banks _____.

When private lenders refused to lend to the Greek government in 2009, other European countries:

Following a severe banking crisis, the average length of time that it takes the unemployment rate to begin to fall is _____ years.

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

After the 2008 financial crisis, proponents of fiscal austerity argued that the primary problem for the United States and Europe was:

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

A situation in which borrowers cannot find credit or must pay very high interest rates for loans is called a:

A vicious downward spiral among banks in which each institution's failure increases the likelihood that another will fail is a(n):

During the Great Depression in the early 1930s:

Shadow banks are prohibited from engaging in maturity transformation.

A repo is: