WorksheetsChapter 3 - SUMMARY – The Creature From Jekyll Island
Total questions: 11
Worksheet time: 6mins
What event in 1970 led to the bailout of Penn Central railroad?
The Penn Central bankruptcy
The oil crisis
The stock market crash
The Watergate scandal
In 1970, how much money did Congress grant in loan guarantees to prevent banks from being at risk due to Penn Central's bankruptcy?
$125 million
$250 million
$500 million
$750 million
The main reason for Congress to guarantee $250 million in new loans to Lockheed in 1970 was:
To support the development of new military aircraft
To prevent the company's bankruptcy
To promote technological innovation
To increase employment opportunities
In 1975, how much did Congress authorize in direct loans to New York City?
$2.3 billion
$1.5 billion
$3.0 billion
$4.5 billion
In 1978, what was the amount guaranteed by Congress in new loans to Chrysler?
$1.5 billion
$2 billion
$1 billion
$500 million
What happened to the Commonwealth Bank of Detroit in 1972, and how did the FDIC respond?
The bank was nationalized by the government.
The bank was closed and the FDIC arranged a merger.
The bank was fined for regulatory violations.
The bank expanded its operations internationally.
The situation of the First Pennsylvania Bank of Philadelphia in 1979 and the measures taken by the FDIC and the Federal Reserve can be described as:
A period of financial stability with no intervention needed.
A financial crisis that required intervention by the FDIC and the Federal Reserve.
An era of rapid growth and expansion for the bank.
A minor setback that was resolved internally without external help.
What were the key events that led to the insolvency of Chicago's Continental Illinois Bank in 1982 and the actions taken by the FDIC?
A series of bad loans and a bank run; FDIC provided a bailout.
A stock market crash; FDIC closed the bank.
A natural disaster; FDIC merged the bank with another.
A cyber attack; FDIC implemented new regulations.
What role did the Federal Reserve System play in these bank bailouts, and what does the term 'lender of last resort' mean in this context?
The Federal Reserve provided emergency loans to banks.
The Federal Reserve increased interest rates.
The Federal Reserve closed down failing banks.
The Federal Reserve did not intervene in the bailouts.
How had the banks been keeping itself a float?
by cooking the books
by investing in real estate
by selling stocks
What is Borrowed Money called? *
Interest
Loans
Savings
Investment
