A depreciation in the U.S. dollar generally hurts U.S. exports industries. A) TRUE B) FALSE Which of the following referred to derivatives as "financial weapon of mass destruction?" A) Ben Bernake B) Barak Obama C) Warren Buffett D) Micheal Lewis In the Great Recession that accompanied and followed the financial crisis of 2007-9. the Fed's actions in buying mortgage backed securities caused long-term interest rates to increase to historic levels. A) True B) false What BEST describes contagion risk? A) The spread of a toxin in the blood supply that spreads to the bond market. B) The domino theory whereby one bank failure leads to another bank failure, and that bank's failure leads to another bank's failure, and so on. C) The process by which a run on one bank spreads to other banks, resulting In a panic by short-term creditors who withdraw their funds from the banking system as a whole. D) The occurrence of an economic depression. Requiring banks to hold 100% reserves against deposits would essentially end the risk of bank runs. A) True B) False An economic recession accompanied by a financial crisis is likely to be more severe than other recessions not accompanied by a financial crisis. A) True B) False Forward guidance is a monetary policy tool used by the Federal Reserve Board. A) True B) False A living will" is A) A last will and testament of a governor on the Board of Governors of the Federal Reserve Board. B) A projection of how well a large, complex financial institution will do in a low interest rate environment