Financial Crisis

Financial Crisis

University

10 Qs

quiz-placeholder

Similar activities

IMU652: Islamic Financial Planning (Chapter 1 & Chapter 2)

IMU652: Islamic Financial Planning (Chapter 1 & Chapter 2)

University

11 Qs

Financial Meltdown

Financial Meltdown

10th Grade - University

15 Qs

Economic Cycle

Economic Cycle

12th Grade - University

15 Qs

Credit and Financial Institutions

Credit and Financial Institutions

12th Grade - University

15 Qs

Credit and Debt Review

Credit and Debt Review

12th Grade - University

15 Qs

Balance of Payment

Balance of Payment

12th Grade - University

15 Qs

Credit and Financial Institutions

Credit and Financial Institutions

12th Grade - University

15 Qs

Financial Markets and Services: Module 1

Financial Markets and Services: Module 1

University

15 Qs

Financial Crisis

Financial Crisis

Assessment

Quiz

Social Studies

University

Hard

Created by

Lim Thye Goh

Used 81+ times

FREE Resource

10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

A financial crisis occurs when an increase in asymmetric information from a disruption in the financial system

causes severe adverse selection and moral hazard problems that make financial markets incapable of channeling funds efficiently.

allows for a more efficient use of funds.

increases economic activity.

reduces uncertainty in the economy and increases market efficiency.

2.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

________ are asymmetric information problems that act as a barrier to efficient allocation of capital.

Asset prices

Credit imbalances

Financial frictions

Financial derivatives

3.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

When financial institutions go on a lending spree and expand their lending at a rapid pace they are participating in a

credit boom.

credit bust.

deleveraging.

market race.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

When financial intermediaries deleverage, firms cannot fund investment opportunities resulting in

a contraction of economic activity.

an economic boom.

an increased opportunity for growth.

a call for government regulation.

5.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Most U.S. financial crises have started during periods of ________ either after the start of a recession, a stock market crash, or the failure of a major financial institution.

low interest rates

high uncertainty

low asset prices

high financial regulation

6.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

In a bank panic, the source of contagion is the

free-rider problem.

too-big-to-fail problem.

transactions cost problem.

asymmetric information problem.

7.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

A substantial decrease in the aggregate price level that reduces firms' net worth may stall a recovery from a recession. This process is called

debt deflation.

moral hazard.

insolvency.

illiquidity.

Create a free account and access millions of resources

Create resources
Host any resource
Get auto-graded reports
or continue with
Microsoft
Apple
Others
By signing up, you agree to our Terms of Service & Privacy Policy
Already have an account?