Exam 29: Crises and Consequences

In a credit crunch, interest rates are unusually low.

The purpose of the Consumer Financial Protection Bureau is to:

Debt overhang is the result of:

Which of the following was NOT one of the problems facing almost all major economies after the 2008 financial crisis?

Monetary policy may be ineffective in a banking crisis because interest rates are so low that consumers and businesses borrow and spend too much.

During the banking crisis of the 1930s, the Federal Reserve:

During the 2008 financial crisis, investors feared that Spain's government might default on its debt because:

If a financial institution is systemically important:

During the 2008 and 2011 financial crises in Spain and Italy, the spread between the interest rates on 10-year bonds issued by the governments of Italy and Spain and the interest rates on 10-year bonds issued by _____ was a measure of risk.

To stabilize the banking crisis in Ireland the:

The national banking era is the period following the establishment of the Federal Reserve in 1913.

Severe banking crises usually lead to:

When the Fed conducts open market purchases from banks, interest rates are most likely to:

The threat of a financial crisis in Europe in 2011 and 2012 was based on problems with:

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

Since the early 1980s, shadow banks have increased because they:

Explain the two main causes of banking crises.

In a severe banking crisis:

Which of the following is a shadow bank?

Ireland's rapid growth for much of the 1990s and 2000s came to an end as the result of overbuilding in the railroad industry.