Final Exam Review Sheet

Final Exam Review Sheet - Econ 500 Fall 2011 Z. Janko...

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DEPARTMENT OF ECONOMICS Econ 500 (01) – Principles of Macroeconomics Final Exam - Review Sheet Remarks regarding the Final Exam: Final Exam is on Thursday December 15 th , from 4:10-6:40pm. Final Exam covers chapters 11 (Regulation/Crisis topics), 16, 17, 18, Final Lecture topics (ch.19 and 25-partial); handouts/articles given out in class and on assignments. The final exam is 2 and ½ hours long. Remember NO calculators are allowed!! These are the basic concepts you should know: Chapter 11 – Regulation/Crisis Lecture Notes 1. What are the causes and examples of instability in the financial system 2. What is the Principle Agent Problem? 3. What does conflict of interest refer to? 4. What are some examples of conflict of interest discussed in class? 5. What is the role of Regulation? 6. What are some ways to remedy conflicts of interest? 7. What are some examples of financial supervision? 8. What are some examples of restrictions on assets? 9. What act introduced restrictions on competition? 10. What act(s) reduced restrictions on competition? 11. What are the arguments made against more competition in the financial markets? 12. What is the consumer protection act, the community reinvestment act, the Dodd-Frank Act, and the Glass Steagall Act? 13. Can regulation encourage MH/AS problems? Give example(s). 14. What are the factors that cause/lead to financial crises? 15. How many bank failures were there after the Great Depression vs. after the S&L crisis of 1980’s? 16. What were some of the issues that led to the S&L crisis? 17. How does the Crisis of 2008 compared to the S&L crisis in term of number of banks failed and the total assets of failed banks? 18. There are 6 big components of the Dodd-Frank Act of 2010? What are they? Chapter 16 1. What are the Functions of the Central Bank of US (FED)? 2. What are the goals/objectives of the FED? What is the most important or KEY objective of the FED? 3. What is the Federal Open Market Committee? 4. What makes the FED independent? 5. What makes the FED dependent? 6. What are the 3 key arguments for independence? 7. What are the 3 key arguments against independence? Chapter 17 1. What are the components of the FED’s balance sheet? 2. How has the balance sheet changed since 2007? 3. Why are reserves (R) on the Liabilities’ side of the FED’s balance sheet? 4. Why are currency in circulation (C) on the Liabilities’ side of the FED’s balance sheet? 5. Where are securities and discount loans on the FED’s balance sheet? 6. What is the definition of the Monetary Base (MB)? Define in terms of R and C. 7. What is MB NB ? 8. What is MB BR ? 9.
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Final Exam Review Sheet - Econ 500 Fall 2011 Z. Janko...

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