annual real GDP growth rate. otherwise the nation will suffer from inflation, 58 indeed from the end of the Civil War until the early 1900s (roughly 50 years), a dollar was a dollar. It held its purchasing power because the US. goverment could not just print up money out of thin air like the Federal Reserve Bank does today. But in today's world our dollar purchasing power goes down as the U.5. government (Congress + corrupt politicians) put heavy pressure on the Federal Reserve to print money to pay for government programs that are often filled with waste, fraud, and abuse at all levels. If we continue on our current trajectory of power-hungry politicans rolling out "questionable" new trillion dollar spending programs fle, climate change, stimulus checks), forcing the Fed to print more money since the taxes collected can't cover all the costs, then what will be the result? Multiple Choice O Workers will be forced to demand higher wages, sales and gift compensation Five there wil be amal posubity that gio part generation will not have five time quilty of life on the cunen or bit generation Example: During the to401 & Tacos jo period of law Infution rothent who got simpin company pentions of #1090 per marin that poutingry came with paid Wetime healther's boneles pits a for Punched even of social Security Cerleft had about worry tre godan pin body almost no private companies offer a monthly pensions of pold Metime Nowtheire binests Bechine inflation makes funafordable] willbe more it cult to grow the medio accoany in tome of res GOP Heher real Incomes. upwoud was O Missing in money on Andional US dolly based inventmints filip sites & bongil wit hecompete mine uncutThe M2 money supplyconsists of M1 + Savings accounts + Money Market Accounts + Bank CDs. 51 True or False True False40 What major disaster below sparked off the debate to create a Federal Reserve Bank? Mutiple Choice . O The tomible and destructive 1906 San Francisco earthquake O The national depression of 1893 O The 19:07 Financial Crisis O The Chill Wie betwiin the states14 Chapter 16 gave us a strong clue on what happens on 30-year mortgage loans. Do banks actually hold these loans for 30 years and wait for the borrower (the homeowner) to pay it off? Multiple Choice O In our System ever since the 2000 Financial crisis. the Federal Reserve is the automatic owner of all US mortgage loans. But they allow the banks to collect the monthly payments for them. O Banks often sell their mortgage toons directly to mutual funds O Barks bundle their mortgage loans and sell them as investments to investon. These investments are anganis mongoge backed upthe Annouch the bank will collecth the payments, it is the investor live life insurance companies or Fornie Man that west for 30 yelm Until me cistomer pays off the mortgage O Yes they hold the loans and wait for the customer to pay it off What's dumb question10 In Chapter 16, the HSBC bank was caught in several violation sof the law. It was helping customers cheat on their income taxes, it helped terrorists launder money, and it helped both North Korea and Iran to avoid international financial sanctions. Nice people . huh? Yet Mc Lenny Breuer the Assistant U.S. Attorney. did not prosecute anyone at the bank despite clear eveidence of wrongdoing, What was his main excuse for not putting anyone in jail? Multiple Choice O He said he could not prosecute because if he put thousands of HSBC employees in jail, then that large bank would bad and then put might set off a chain of other bank failures. The popular press said he didn't prosecute because HSBC was "too big to jail " O He said that the corruption was so widespeed that he could not prosecute because the criminals inside the tara paid off high level politicians in the US government, He was afraid of going after powerful U.S. politicians O All other choices are wrong. M: Lenny Breuer was a hero and did successfuly prosecute hundreds of senior HSBC bank conchloved despite The threats against his life by the terrorists, international drug families, and the North Korean intelligence services O He revealed that the this situation was too dangerous for him because the criminal elements inside me H30C Bank were conboiled by North Korea and China's CCP and they told him they would kill him if he did anything against HSBC bara.2 During the mortgage loan subprime era (2002 - 2008), the Federal Reserve Bank was not really taking any actions to stop the crazy and reckless lending that was going on in the housing industry. They were suffering from what is known as the "Recognition Lag." True or False True False