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mhw10ANS - Mhw 10 Question2 - Single Correct 1.0 Point A...

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Question2 - Single Correct 1.0 Point A common element in all of the banking crisis episodes in different countries is A deposit insurance. B increased regulation. C the existence of a government safety net. D lack of competition. AWKWARD QUESTION – REFERRING TO MORAL HAZARD PROBLEM THAT EXISTED IN MSOT/MANY/ALL BANKING CRISES (BUT MAY BE NOT A CAUSE BUT A FACT THAT ALL BANKING SYSTEMS HAVE INSURANCE, LENDER OF LAST RESORT, ETC) Question4 - Single Correct 1.0 Point An important factor in producing the subprime mortgage crisis was A weak incentives for mortgage brokers to use complicated mortgage products. B strong incentives for the mortgage brokers to verify income information. C lax consumer protection regulation. D onerous rules placed on mortgage originators. ALL OTHER CHOICES ARE REVERSED – JUST THE OPPOSITE OF THE CASE Question13 - Single Correct 1.0 Point Although it has a population about half that of the United States, Japan has A fewer than 100 commercial banks. B many more banks. C more than 5000 commercial banks. D about 25 percent of the number of banks. FACT – POINT IS THAT U.S. HAS TOO MANY BANKING ‘COMPANIES’ COMPARED TO ALL OTHER COUNTRIES Question19 - Single Correct 1.0 Point Prior to 2008, bank managers looked on reserve requirements A as a subsidy on deposits. B as a subsidy on loans. C as a tax on loans. D as a tax on deposits. PRIOR TO FED PAYING INTEREST ON RESERVES, REQUIRED RESERVES WERE FUNDS THAT HAD AN OPPORTUNITY COST OF THE INTEREST THEY COULD BE EARNING IF LOANED OUT 1.0 Point
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mhw10ANS - Mhw 10 Question2 - Single Correct 1.0 Point A...

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