1 (1 point) Question 1 UnsavedWhich of the following were factors exacerbating t

Question

1 (1 point) Question 1 UnsavedWhich of the following were factors exacerbating the Great Depression?

Question 1 options:

higher interest rates

falling productivity

all of the above

2 (1 point) Question 2 UnsavedARMs

Question 2 options:

force borrowers to assume some of the interest rate risk from banks.

have become less prevalent in the U.S. since the Great Depression

neither of the above.

4 (1 point) Question 4 UnsavedRegulators do not consider a financial institution to be a bank if it does not

Question 4 options:

hold bonds.

make loans.

none of the above

5 (1 point) Question 5 UnsavedWhich of the following contributed to the S&L crisis in the 1980s?

Question 5 options:

rising real interest rates around 1980

S&L involvement in commercial real estate

all of the above

7 (1 point) Question 7 UnsavedAccording to the Herfindahl index, the U.S banking industry is _____ concentrated than that of most developed economies.

Question 7 options:

less

equally

The Herfindal index is not a measure of concentration.

9 (1 point) Question 9 UnsavedWhich of the following contributed to falling profits for banks in the 1970s and early 1980s?

Question 9 options:

regulatory forbearance

high inflation

low capital levels

10 (1 point) Question 10 UnsavedThe erosion of Glass-Steagall allowed financial institutions to take advantage of

Question 10 options:

economies of scale.

economies of scope.

online banking

12 (1 point) Question 12 UnsavedBank consolidation is potentially a problem because

Question 12 options:

larger banks are harder to regulate.

banks are less diversified.

banks are less able to innovate.

14 (1 point) Question 14 UnsavedBasel II gave more sophisticated guidelines for judging _____ than Basel I.

Question 14 options:

asset quality

capital adequacy

liquidity

15 (1 point) Question 15 UnsavedThe biggest reason for the consolidation of the banking industry in the 1980s was

Question 15 options:

bankruptcy.

bailouts.

all of the above.

(1 point) Question 16 UnsavedThe most beneficial government reaction to the Great Depression was

Question 16 options:

lowering interest rates.

raising tariffs.

creating the FDIC.

17 (1 point) Question 17 UnsavedWhich of the following reduces the incentive for consumers to monitor the liquidity of banks? Question 17 options:

online banking

SWAPs

brokered deposits

18 (1 point) Question 18 UnsavedBank consolidation is desirable because

Question 18 options:

banks are more diversified.

both of the above.

neither of the above.

20 (1 point) Question 20 UnsavedWhich of the following is an example of disintermediation? Question 20 options:

money market mutual funds

interest-only mortgages

all of the above

Explanation / Answer

Question 1 options:

Answer : all of the above                

Question 4 Answer : make loans.

Question 5 Answer: Both rising interest rate and S&L involvement in real estate contributed to the crisis , apart from regulatory failures.

Question 7 : Answer: According to the Herfindahl index, the U.S banking industry is _More concentrated than that of most developed economies.

Question 9 : Answer: High inflation

Question 10 : Answer: economies of scope.

Question 12 : answer: larger banks are harder to regulate.

Question 14 : Answer : capital adequacy

Question 15: Answer: bankruptcy.

Question 16 Answer: creating the FDIC.

Question 17 : answer: online banking

Question 18 : Answer: banks are more diversified.

Question 20 : Answer: all of the above

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.