To help minimize the financial crisis of 2007-2009, the government has Question

Question

To help minimize the financial crisis of 2007-2009, the government has

Question options:

lent money to replace private sector funds.

lowered interest rates.

all of the above.

7.During a housing bubble, people continue to buy houses because

Question options:

they expect house price to continue to rise.

they are able to get loans at high interest rates.

all of the above.

8.Futures contracts avoid the difficulties of forward contracts by:

Question options:

efficiently linking buyers and sellers.

controlling the price of the commodity being traded.

allowing speculators to make a profit on futures contracts.

10.The payoff for issuing an option is known as a(n) _____.

Question options:

put

premium

valuation

Subprime mortgages refer to home loans

Question options:

to high risk borrowers.

for real estate with rising prices.

at below market interest rates. all of the above.

13. Which of the following does NOT determine the premium paid by the option holder to the option issuer?

Question options:

The expiration date

The strike price

The volume of the asset traded

16.All of the following EXCEPT one would have a strong propensity to initiate a financial crisis. Which is the exception? Question options:

increases in uncertainty

increases in interest rates

exchange rate appreciation

Question 17 When the Fed bought commercial paper (short term loans to established firms) they were

Question options:

engaged in a bailout. operating as a lender of last resort. decreasing the money supply. all of the above.

Question 19 When the Treasury Department recapitalized some banks, they were Question options: engaged in a bailout.

operating as a lender of last resort.

decreasing the money supply.

Question 20

At the beginning of March 2012, Brian told Chris that he is thinking of buying some shares of Ford motors from him at the end of the month at $12/share. Chris agreed to this proposal and wrote a contract to sell shares to Brian at a price of $12/share. The current market price is $10/share. At the end of the month, the share price was $11/share, so Brian chose not to buy the shares from Chris. This is an example of:

Question options:

a forward contract.

an option.

a swap.

( please do all the questions if you can , don't just do one or two of all )

Explanation / Answer

6.all of the above.
7.they expect house price to continue to rise.
8.allowing speculators to make a profit on futures contracts.
10.premium
to high risk borrowers.
13.The volume of the asset traded
16.exchange rate appreciation
17.operating as a lender of last resort
19.engaged in a bailout.
20.an option.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.