Figure 1 on the Corporate Bond Spreads of the Hale, Markes and Nechio paper shows that between January 2010 and December 2011, the spreads in the Euro area were higher than those in the United States.

A. True

B. False

According to the Hale, et. al., article, which of the following is more insulated among corporate bonds of the United States from shocks originating in European countries.

A. highly rated nonfinancial companies

B. lowly rated nonfinancial companies

C. financial borrowers of high credit quality

D. none of the above

According to the Fligstein, et. al., article, it appears that the FOMC did recognize the situation and its critical nature immediately after the collapse of Lehman brothers in September 08.

A. True

B. False

According to the Fligstein, et. al., article, FOMC members clearly saw the deep connection between housing and finance, especially the degree to which mortgage backed securities influenced the collapse of the financial system.

A. True

B. False

According to the Fligstein, et. al., article, In the wake of the failure of the Federal Reserve to foresee the crisis, there has been relatively little real push for change in the way that the Federal Reserve operates.

A. True

B. False

One major exception to the Lehman Brothers collapse and its impact as discussed by FOMC was the opinion of the President of the .................. Federal Reserve Bank who considered it to be more serious than his counterparts. (Fligstein article).

A. Kansas City

B. Richmond

C. Atlanta

D. Boston