the economics of money, banking, and financial markets

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71. 
    

    Asset-backed commercial paper is backed by all of the following except ____.
    A) unsecured promissory notes
    B) mortgages
    C) car loans
    D) credit card receivables
    Answer: A
    Diff: 1 Type: MC Page Ref: 197
    Skill: Recall
    Objective List: 9.3 Discuss the most recent financial crisis

    
    


72. 
    

    The risk of asset-backed commercial paper depends on ____.
    A) unsecured promissory notes
    B) the underlying securities
    C) commercial paper
    D) Treasury bills
    Answer: B
    Diff: 1 Type: MC Page Ref: 197
    Skill: Applied
    Objective List: 9.3 Discuss the most recent financial crisis

    
    


73. 
    

    "Plain vanilla" assets are ____.
    A) unsecured promissory notes
    B) residential mortgages
    C) subprime mortgages
    D) CDOs
    Answer: B
    Diff: 1 Type: MC Page Ref: 197
    Skill: Recall
    Objective List: 9.3 Discuss the most recent financial crisis

    
    


74. 
    

    During the ABCP saga, The Bank of Canada ____.
    A) shut down all non-bank sponsored conduits
    B) refused to accept ABCPs as collateral for loans to banks
    C) provided liquidity as a lender to the market
    D) was bailed out by the CDIC
    Answer: B
    Diff: 2 Type: MC Page Ref: 197
    Skill: Recall
    Objective List: 9.3 Discuss the most recent financial crisis

    
    


75. 
    

    What triggered the 2007- 20 08 financial crises?
    Answer: The crises was triggered by mismanagement of financial innovation in the sub prime
    residential mortgage market and the bursting of a bubble in housing prices.
    Diff: 1 Type: SA Page Ref: 204
    Skill: Recall
    Objective List: 9.3 Discuss the most recent financial crisis