Exam 29: Crises and Consequences

The Fed usually responds to a recession by:

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

The 2008 financial crisis in Europe was caused primarily by problems with:

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

After the 2008 financial crisis, proponents of austerity argued that it was the appropriate policy because:

The Dodd-Frank bill addressed all of the following issues EXCEPT:

Before the 2008 financial crisis, shadow banks were:

In 2010, Congress passed the Dodd-Frank Act, which was designed to improve regulation of the financial sector and avoid another financial crisis like the one of 2008.

In a bank run:

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.

Between the Civil War and the Great Depression, the United States' banking system was more stable than it has been since the Great Depression.

Following the 2008 financial crisis, commercial banks:

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

The primary reason for Lehman Brothers' bankruptcy in September 2008 was its investment in:

In a credit crunch:

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

Proponents argued that fiscal stimulus was appropriate after the 2008 financial crisis because:

The primary cause of the banking crises that occurred between 1970 and 2007 in poor countries was_____. The primary cause in wealthy countries was _____.

If the government guarantees not only the deposits but also the other liabilities of a failing bank, the government usually:

Fiscal stimulus is: