1. The key factor(s) in the 2008 financial crisis / housing bubble was Select one: a....
1. The key factor(s) in the 2008 financial crisis / housing bubble was
Select one:
a. Corporate greed
b. Lack of regulation of the financial and housing sectors
c. Low interest rates and federal intervention in the housing market
d. High interest rates
2.
According to the video Money for Nothing, which of the following was proposed regarding the post-2008 economic recovery?
Select one:
a. We may be passing through the "eye of the storm"
b. The crisis is over
c. The crisis was resolved without creating any moral hazards
d. A crisis that was created by "money for nothing" can surely be solved by more "money for nothing"
3.
According to the video Money for Nothing, the "new" kind of inflation emerged in the 2000s that made people feel wealthy is called
Select one:
a. Core inflation
b. Asset inflation
c. Demand-pull inflation
d. Cost-push inflation
4.
Which of the following will result when a Central Bank expands the money supply and keeps interest rates artificially low?
Select one:
a. People will borrow less money
b. Prices will fall
c. People will save less money
d. People will become more wealthy
Homework Answers
1. Option B. Lack of regulation of the financial and housing sectors
Explanation: The lack of regulations in the financial and housing sectors resulted in excessive risk-taking and the development of complex financial products. This resulted in the financial crisis.
Add Answer to:
1. The key factor(s) in the 2008 financial crisis / housing
bubble was
Select one:
a....
Problem 6 Due to the collapse of the housing bubble in 2007-2008 there was a financial...
Problem 6 Due to the collapse of the housing bubble in 2007-2008 there was a financial crisis that led to rampant unemployment. Draw a best resonse curve (BRC) for each of the following years and explain what it illustrates 1. the pre-crisis period (2006) 2. the crisis years (20078) 3. the post-crisis year (2009) Your diagram should show that firms would be able to lower costs during the crisis by offer ing a lower wage however, there is empirical evidence...
3.5 During the 2007-2008 global financial crisis unemployment rates in many countries were at very high levels. By...
3.5 During the 2007-2008 global financial crisis unemployment rates in many countries were at very high levels. By 2010 a number of countries were showing signs of economic recovery However, their rates of unemployment were remaining high, and in some countries the rates of unemployment were continuing to rise further. Why would the rates of unemployment remain very high or rise even further, even when these economies had begun to grow again GDP C+1+G+NX Discouraged workers - what are they...
One of the most discussed topics in finance recently is the global economic crisis that...
One of the most discussed topics in finance recently is the
global economic crisis that is said to have begun in the 2000s.
Your professor instructed your team to write an article for the
college newspaper. Your friend has written the first draft of the
article, which captures the essence of the global economic crisis.
She has left some important points for you to review and has asked
you to check the summary. Which statements belong in the summary?...
1) Which of the following is the most likely explanation of Japan's very low market interest...
1) Which of the following is the most likely explanation of Japan's very low market interest rates in the early 2000s? A) expected deflation B) an increasing budget deficit C) an increasing trade surplus D) an increase in corporate profits Answer: A Why lower interest rate cause deflation in this question? From Investopedia, 'In general, as interest rates are reduced, more people are able to borrow more money. The result is that consumers have more money to spend, causing the...
1. During the financial crisis of 2008, the prices of U.S. Treasury securities A) rose and...
1. During the financial crisis of 2008, the prices of U.S. Treasury securities A) rose and the price of corporate bonds declined. B) fell relative to the prices of corporate bonds. C) remained in the same relative position to the prices of corporate bonds. D) were frozen by order of the federal government. 2. Which combination of assets represents the most diversification? A) holding corporate and Treasury bonds B) holding shares of Google and Yahoo C) holding shares of Google...
A The housing market has recovered slowly from the economic crisis of 2008. Recently, in one...
A The housing market has recovered slowly from the economic crisis of 2008. Recently, in one large community, realtors randomly sampled 41 bids from potential buyers to estimate the average loss in home value. The sample showed the average loss was $9424 with a standard deviation of $1269 Find a 95% confidence interval for the mean loss in value per home. ($ $ ) B. In a national health survey, the total cholesterol of 2827 adults in a particular country...
12) 12) One contributing factor to the 2007-2009 financial crisis was the structuring of mortgage loans...
12) 12) One contributing factor to the 2007-2009 financial crisis was the structuring of mortgage loans with: A) low initial payments, offset by significantly higher payments later. B) high initial payments, offset by high payments later. C) very short maturities. D) high initial payments, offset by significantly lower payments later.
6) Financial crises in advanced economies might start from a A) debt deflation. B) currency crisis....
6) Financial crises in advanced economies might start from a A) debt deflation. B) currency crisis. C) mismanagement of financial innovations. D) currency mismatch. 7) The most common definition that monetary policymakers use for price stability is A) low and stable deflation. B) an inflation rate of zero percent. C) high and stable inflation. D) low and stable inflation. 8) Monetary policy is considered time-inconsistent because A) of the lag times associated with the implementation of monetary policy and its...
4. The subprime mortgage market The financial crisis started with defaults-borrowers not repaying their loans-on subprime mortgages in the United States. Subprime mortgages have which of the followin...
4. The subprime mortgage market The financial crisis started with defaults-borrowers not repaying their loans-on subprime mortgages in the United States. Subprime mortgages have which of the following characteristics? Check all that apply. They have lower overall interest rates than most other mortgages. They are made to people with relatively few assets. They have a higher likelihood of default. Subprime mortgages expanded to about 35% of all mortgages issued in the United States in 2004. which of the following contributed...
5. In the United States, money is backed by: Select one: a. no physical commodity. b....
5. In the United States, money is backed by: Select one: a. no physical commodity. b. gold. c. None of these answers is correct. d. oil e. silver. 6. Practically, in the long run the real interest rate is equal to: Select one: a. the marginal product of capital. b. the rate of return to long-term bonds. c. a savings account. d. the return to stock markets. e. the return to housing. 7. Figure 9.5: U.S. Inflation 1960-2015 PERCENT 2012...
Problem 6 Due to the collapse of the housing bubble in 2007-2008 there was a financial crisis that led to rampant unemployment. Draw a best resonse curve (BRC) for each of the following years and explain what it illustrates 1. the pre-crisis period (2006) 2. the crisis years (20078) 3. the post-crisis year (2009) Your diagram should show that firms would be able to lower costs during the crisis by offer ing a lower wage however, there is empirical evidence...
3.5 During the 2007-2008 global financial crisis unemployment rates in many countries were at very high levels. By 2010 a number of countries were showing signs of economic recovery However, their rates of unemployment were remaining high, and in some countries the rates of unemployment were continuing to rise further. Why would the rates of unemployment remain very high or rise even further, even when these economies had begun to grow again GDP C+1+G+NX Discouraged workers - what are they...
One of the most discussed topics in finance recently is the
global economic crisis that is said to have begun in the 2000s.
Your professor instructed your team to write an article for the
college newspaper. Your friend has written the first draft of the
article, which captures the essence of the global economic crisis.
She has left some important points for you to review and has asked
you to check the summary. Which statements belong in the summary?...
A The housing market has recovered slowly from the economic crisis of 2008. Recently, in one large community, realtors randomly sampled 41 bids from potential buyers to estimate the average loss in home value. The sample showed the average loss was $9424 with a standard deviation of $1269 Find a 95% confidence interval for the mean loss in value per home. ($ $ ) B. In a national health survey, the total cholesterol of 2827 adults in a particular country...
12) 12) One contributing factor to the 2007-2009 financial crisis was the structuring of mortgage loans with: A) low initial payments, offset by significantly higher payments later. B) high initial payments, offset by high payments later. C) very short maturities. D) high initial payments, offset by significantly lower payments later.
6) Financial crises in advanced economies might start from a A) debt deflation. B) currency crisis. C) mismanagement of financial innovations. D) currency mismatch. 7) The most common definition that monetary policymakers use for price stability is A) low and stable deflation. B) an inflation rate of zero percent. C) high and stable inflation. D) low and stable inflation. 8) Monetary policy is considered time-inconsistent because A) of the lag times associated with the implementation of monetary policy and its...
4. The subprime mortgage market The financial crisis started with defaults-borrowers not repaying their loans-on subprime mortgages in the United States. Subprime mortgages have which of the following characteristics? Check all that apply. They have lower overall interest rates than most other mortgages. They are made to people with relatively few assets. They have a higher likelihood of default. Subprime mortgages expanded to about 35% of all mortgages issued in the United States in 2004. which of the following contributed...
5. In the United States, money is backed by: Select one: a. no physical commodity. b. gold. c. None of these answers is correct. d. oil e. silver. 6. Practically, in the long run the real interest rate is equal to: Select one: a. the marginal product of capital. b. the rate of return to long-term bonds. c. a savings account. d. the return to stock markets. e. the return to housing. 7. Figure 9.5: U.S. Inflation 1960-2015 PERCENT 2012...
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