Banks considered "too big to fail" were:
A. helped by fiscal policy, but eventually went bankrupt.
B. allowed to go bankrupt.
C. bailed out through consumer spending.
D. bailed out through fiscal policy.
Answer: D
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The most important function of the Fed is to
A) provide a system for collecting and clearing checks. B) regulate the money supply. C) collect taxes. D) support the federal government's deficit spending by buying government securities.
Based on the figure above, as a result of international trade, U.S. domestic production ________ airplanes per year
A) decreases by 200 B) increases by 300 C) decreases by 100 D) increases by 500 E) increases by 200
The Gramm-Leach-Bliley Act (GLBA), passed by the U.S. Congress in the year 1999, allows commercial banks to:
a. operate in all foreign countries. b. open new branches in Cuba. c. expand their business into other areas of finance, including insurance and selling securities. d. raise reserve requirements for other financial institutions. e. eliminate unit banking.
The main risk that investment banks face from their underwriting services is:
A. the client will not pay for the service. B. the company issuing the securities will go bankrupt. C. the price paid by investors exceeds the guaranteed price to the issuing firm. D. the price investors pay for the security is less than the guaranteed price to the issuing firm.