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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
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
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