the economics of money, banking, and financial markets

298 $

© 2014 Pearson Canada Inc.$

10. 
    

    As in the United States, an important factor in the banking crises in Latin America was the
    ____.
    A) financial liberalization that occurred in the 1980s
    B) decline in real interest rates that occurred in the 1980s
    C) high inflation that occurred in the 1980s
    D) sluggish economic growth that occurred in the 1980s
    Answer: A
    Diff: 1 Type: MC Page Ref: 10.1A- 3
    Topic: Questions for Web Appendix on the Banking Crises Throughout the World
    Skill: Applied
    Objective List: Appendix: Banking Crises Throughout the World

    
    


11. 
    

    FDICIA ____ incentives for banks to hold capital and ____ incentives to take on
    excessive risk.
    A) increased; decreased
    B) increased; increased
    C) decreased; decreased
    D) decreased; increased
    Answer: A
    Diff: 1 Type: MC Page Ref: 10.1A- 3
    Topic: Questions for Web Appendix on the Banking Crises Throughout the World
    Skill: Recall
    Objective List: Appendix: Banking Crises Throughout the World

    
    


12. 
    

    An analysis of the political economy of the savings and loan crisis helps one to understand
    ____.
    A) why politicians aided the efforts of thrift regulators, raising regulatory appropriations and
    encouraging closing of insolvent thrifts
    B) why thrift regulators were so quick to inform Congress of the problems that existed in the
    thrift industry
    C) why thrift regulators willingly acceded to pressures placed upon them by members of
    Congress
    D) why politicians listened so closely to the taxpayers they represented
    Answer: C
    Diff: 1 Type: MC Page Ref: 10.1A- 3
    Topic: Questions for Web Appendix on the Banking Crises Throughout the World
    Skill: Applied
    Objective List: Appendix: Banking Crises Throughout the World