Exam 29: Crises and Consequences

Before the 2008 financial crisis, Spain had _____ debt and a budget _____.

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

The 2008 financial crisis made it clear that banks were overregulated.

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

The special office created by the Dodd-Frank Act to police financial industry practices and protect borrowers is called the:

Explain how shadow banks, which don't take deposits, can have bank runs.

In a vicious cycle of deleveraging, financial institutions:

The panic of 1893 began when:

Explain the difference between fiscal stimulus and fiscal austerity in dealing with the recessions that occurred in many countries after the 2008 financial crisis.

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

Most of a bank's assets are:

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

Greece's economy accounts for _____ of European GDP.

A banking crisis occurs:

Receipts for gold and silver deposited with goldsmiths became one of the first forms of paper money.

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

The banking panics in 1873 and 1893 were caused by:

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

Before the Great Depression in the 1930s, the government:

Which of the following is intended to prevent bank runs?