Yellen Says 'Under Pressure' US Banking System Is Sound

The video discusses the current state of the banking system, emphasizing its soundness despite recent pressures. Unlike the 2008 solvency crisis, the current situation involves contagious bank runs. The federal government is committed to mitigating financial stability risks and has taken steps to reassure the public of the system's resilience. The government plans to remain vigilant and may intervene if smaller banks face difficulties that could lead to contagion.

What is the main difference between the current banking issue and the 2008 financial crisis?

• The 2008 crisis was a result of government policies.

• The current issue is a solvency crisis.

• The 2008 crisis was due to technological failures.

• The current issue involves contagious bank runs.

What has the federal government demonstrated regarding financial stability risks?

• A lack of interest in financial stability.

• A commitment to taking necessary actions to mitigate risks.

• An intention to let the market self-correct.

• A plan to increase taxes to support banks.

What is the purpose of the government's actions according to the speaker?

• To promote international banking.

• To reduce the number of banks.

• To reassure the public of the banking system's resilience.

• To increase bank profits.

What does the speaker suggest about the public's confidence in the banking system?

• The public should invest in foreign banks.

• The public should withdraw their savings.

• The public should have confidence in the banking system.

• The public should be wary of the banking system.

What might the government do if smaller banks face difficulties?

• Ignore the situation.

• Potentially intervene to prevent contagion.

• Encourage mergers with larger banks.

• Close down the smaller banks.