the economics of money, banking, and financial markets

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67. 
    

    In Canada, an early symptom of the U.S. subprime mortgage market problem was the
    ____.
    A) financial engineering of the asset-backed commercial paper market
    B) freezing of the asset-backed commercial paper market
    C) increase of the asset-backed commercial paper market
    D) restructuring of the asset-backed commercial paper market
    Answer: B
    Diff: 3 Type: MC Page Ref: 196
    Skill: Recall
    Objective List: 9.3 Discuss the most recent financial crisis

    
    


68. 
    

    The government bailout of troubled financial institutions occurred in the U.S. and many
    other countries. Which country saw their banking system collapse requiring the government to
    take over its three largest banks?
    A) Iceland
    B) England
    C) Germany
    D) Belgium
    Answer: A
    Diff: 1 Type: MC Page Ref: 196
    Skill: Applied
    Objective List: 9.3 Discuss the most recent financial crisis

    
    


69. 
    

    Under the Montreal Accord investors ____.
    A) froze losses to $200 million
    B) agreed to a standstill period
    C) were bailed out by the Bank of Canada
    D) were bailed out by the CDIC
    Answer: B
    Diff: 1 Type: MC Page Ref: 196
    Skill: Recall
    Objective List: 9.3 Discuss the most recent financial crisis

    
    


70. 
    

    Like a CDO, a structured investment vehicle pays off cash flows from pools of assets,
    however, rather than long-term debt the structured investment vehicle backs ____.
    A) commercial paper
    B) Treasury notes
    C) corporate bonds
    D) municipal bonds
    Answer: A
    Diff: 1 Type: MC Page Ref: 196
    Skill: Recall
    Objective List: 9.3 Discuss the most recent financial crisis