ECO 303 – Because of asymmetric information, the failure of one bank can lead to runs on o$ 15.00


1) Because of asymmetric information, the failure of one bank can lead to runs on other banks. This is the

A) too-big-to-fail effect. 

B) moral hazard problem.

C) adverse selection problem. 

D) contagion effect.

2) During the boom years of the 1920s, bank failures were quite

A) uncommon, averaging less than 30 per year. 

B) uncommon, averaging less than 100 per year.

C) common, averaging about 600 per year. 

D) common, averaging about 1000 per year.

3) In the early stages of the 1980s banking crisis, financial institutions were especially harmed by

A) declining interest rates from late 1979 until 1981. 

B) the severe recession in 1981-82.

C) the disinflation from mid 1980 to early 1983. 

D) the increase in energy prices in the early 80s.

4) That several hundred S&Ls were not even examined once in the period January 1984 through June 1986 can be explained by

A) Congress’s unwillingness to allocate the necessary funds to thrift regulators.

B) regulators’ reluctance to find the specific problem thrifts that they knew existed.

C) slower growth in lending meant that less regulation was needed.

D) Congress’s unwillingness to listen to campaign contributors.

5) The ability to use the too-big-to-fail policy was curtailed by the passage of the FDICIA. To use this action today, the FDIC must get approval of a two-thirds majority of both the Board of Governors of the Federal Reserve and the directors of the FDIC and also the approval of the

A) Secretary of the Treasury. 

B) Senate Finance Committee Chairperson.

C) governor of the state in which the failed bank is located. 

D) President of the United States.

6) Competition between banks and other financial intermediaries

A) encourages greater risk taking. 

B) encourages conservative bank management.

C) increases bank profitability. 

D) eliminates the need for government regulation.

7) Regulations that reduced competition between banks included

A) branching restrictions. 

B) bank reserve requirements.

C) the dual system of granting bank charters. 

D) interest-rate ceilings.

8) Regulations designed to provide information to the marketplace so that investors can make informed decisions are called

A) disclosure requirements. 

B) efficient market requirements.

C) asset restrictions. 

D) capital requirements.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages