Question
Please answers these questions 100% correctly and try to answers fast. Its urgent 64. Inflation is: A. An increase in purchasing power B. A benefit
Please answers these questions 100% correctly and try to answers fast. Its urgent
64. Inflation is:
A. An increase in purchasing power
B. A benefit to creditors
C. A loss of purchasing power
D. No longer important to the Fed
65. To best co-ordinate economic growth:
A. Monetarists emphasize money supply policy
B. Keynesians emphasize fiscal policy
C. both are true
D. Both are false
66. LIBOR, sometimes appearing as Libor:
A. is the London interbank offered rate
B. May be replaced by SOFR by late 2021
C. Was fraudulently manipulated by British banking personnel up to about 2012.
D. All of the above
E. A and B only
67. One aspect of information asymmetry
A. Borrowers cannot compare interest rates with other borrowers of similar credit risk
B. Households can refrain from borrowing
C. Lending institutions are not highly regulated
D. All of the above
68. In the U.S., the two most important cycles of bank failures occurred:
A. 1907 -1915 and 1981-1990
B. 1907-1915 and 1921-1933
C. 1921-1933 and 1981-1990
D. 1981-1990 and 2014-2017
69. The most important mechanism for preventing bank failures due to insufficient liquidity is:
A. The discount window at the Fed
B. Deposit insurance
C. The dual banking system
D. All of the above
E. A and B only
70. Under a payoff and liquidate policy, if sufficient funds were not available after the liquidation of a failed financial institution, insured depositors would be paid:
A. in full up to a limit of $250,000
B. for up to half of their account balance at the time of failure
C. up to $2,500 per depositor
D. nothing
71. You are the president of a Savings and Loan in 1979. Your institution has a home loan portfolio of $2 billion which pays 6.5% per year. These loans are fixed-rate and have a term of 30 years. Rates paid to depositors have been about 4%, but just now interest rates offered by competing institutions and the money market offer depositors over 9.5%.
A. Unless you can sell the entire loan portfolio and make new loans at higher rates, it is likely your S&L will fail
B. Your institution has a negative interest sensitivity gap
C. A merger with another S&L will not solve this dilemma
D. All of the above
E. A and B only
72. Savings banks are also commonly referred to as:
A. Thrifts
B. S&Ls
C. Building societies
D. All of the above
E. B and C only
73. Savings institutions failed in the early 1980s, mostly because:
A. They were heavily exposed to interest rate risk
B. They had placed too much confidence in futures market hedging
C. They invested too heavily in the stock market
D. All of the above
E. A and B only
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started