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1)
Down payments are designed to reduce the likelihood of default on
mortgage loans.
Answer:[membership level="2,3,4,5"]
TRUE[/membership]
2)
In 2012, mortgage loans to farms represented the largest
proportion of mortgage lending in the U.S.
Answer:[membership level="2,3,4,5"]
FALSE[/membership]
3)
The global financial crisis illustrates that derivatives cannot
be used to hedge € financial institutions should be barred
from using them in any form.
Answer:[membership level="2,3,4,5"]
TRUE[/membership]
4)
In the long run, the price stability goal is inconsistent with
other goals, such as economics growth, stability of financial
markets, etc.
Answer:[membership level="2,3,4,5"]
FALSE[/membership]
5)
In the short run, price stability often conflicts with the goals
of high employment and interest-rate stability.
Answer:[membership level="2,3,4,5"]
TRUE[/membership]
6)
For both emerging market economies and advanced economies, Stage
Two of a financial crisis is the same € a banking crisis.
Answer:[membership level="2,3,4,5"]
FALSE[/membership]
7)
In contrast to most advanced economies that typically denominate
debt in domestic currency, emerging market economies denominate
many debt contracts in foreign currency.
Answer:[membership level="2,3,4,5"]
TRUE[/membership]
8)
To help raise the money to finance railroad expansions, J. P.
Morgan's father resided in London and sold Morgan railroad
securities to European investors.
Answer:[membership level="2,3,4,5"]
TRUE[/membership]
9)
In the U.S., financial intermediaries are restricted in what they
are allowed to do and what assets they can hold.
Answer:[membership level="2,3,4,5"]
TRUE[/membership]
10)
The first true venture capital firm was ________, established in
1946 by MIT president Karl Compton and local business leaders.
A) American Research & Development (ARD)
B) Charles River Development
C) Redsocks Capital
D) the MIT Fund
Answer:[membership level="2,3,4,5"]
A[/membership]
11)
The major differences between financial regulation in the United
States and abroad relate to bank regulation. Specifically, in the
past, the U.S. was the only industrialized country to subject
banks to restrictions on ________.
A) branching
B) lending
C) assets they may hold
D) the size they could grow to
