81. Prior to the recession Fed chairman Ben Bernanke argued that: a. there was n

Question

81. Prior to the recession Fed chairman Ben Bernanke argued that: a. there was no housing bubble. b. housing prices would stabilize. c. housing problems were local in nature and wouldn't affect the national economy. d. All of the above. e. None of the above. 82. Under which president(s) did our economic recovery enjoy the highest average annual growth in real GDP? a. Reagan. b. Obama. c. Bush/Clinton. d. Bush. e. Trump. 83. According to Rickards, the collapse of the dollar: a. may lead to inflation reminiscent of the 1970s. b. may lead to deflation. c. will likely have no price effects on the U.S. d. All of the above. e. Only A and B of the above. 84. Rickards maintains that the U.S. dollar nearly ceased being the world’s reserve currency in: a. 1952. b. 1965. c. 1978. d. 1984. e. 1999. 85. According to Salerno, the government of Greece will be able to impose negative interest rates on people’s deposits by: a. requiring that old currency be exchanged for new currency at a discount. b. imposing a fee on cash withdrawal from bank accounts. c. hiding it in the income tax. d. automatically shrinking these deposits by 0.25% per month. e. eliminating all cash transactions. 86. Salerno maintains that the so-called “war on cash” in the United States began with the passage of: a. the National Banking Act of 1863. b. the Federal Reserve Act of 1913. c. the Smoot-Hawley tariff of 1930. d. the Glass-Steagall Act of 1933. e. the Bank Secrecy Act of 1970. 87. Which of the following is true about median home prices in the United States? a. They fell sharply during both of the last two recessions. b. They rose sharply during both of the last two recessions. c. They rose by about $50,000 between 1999 and 2006. d. Following the recession of 2008 they fell dramatically, but have since risen. e. From 2009 to 2017 they have been stagnant. 88. Which of the following is true about Bear Stearns? a. The Fed brokered a deal that allowed Goldman Sachs to buy out Bear. b. The Fed lend Bear $13 billion for three days while a sale was being arranged. c. In the year prior to its collapse, its stock price peaked at about $65. d. The final sale of Bear was made at $6.50 per share. e. All of the above. 89. The widespread failure of the financial system is known as: a. systemic failure. b. wholesale failure. c. financial mania. d. the “dollar doldrums.” e. the Fisher Folly. 90. An asset bubble can occur only in: a. financial assets, like bonds. b. real assets, like cotton. c. money assets, like gold. d. land and other natural resources. e. None of the above. 91. If the Fed sells bonds, then which of the following will occur? a. Bank reserves will rise. b. Interest rates will rise. c. Investment will rise. d. Income will rise. e. All of the above.

Explanation / Answer

First question is answered below

Correct option: (a) there was no housing bubble

Reason: Ben Bernanke had no clue about the approaching recession and there was no such thing as the housing bubble as per him. His ignorance towards this led to a severe recession

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