causes and consequences of the financial
crisis of 2008–2009.
73.
Award: 10.00 points
74.
Award: 10.00 points
The systemic risk that led to the financial crisis of 2008 was increased by _______.
collateralized debt obligations
subprime mortgages
credit default swaps
All of the choices are correct.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-06 Explain the
causes and consequences of the financial
crisis of 2008–2009.
An investment adviser has decided to purchase gold, real estate, stocks, and bonds in equal
amounts. This decision reflects which part of the investment process?
Asset allocation
Investment analysis
Portfolio analysis
Security selection
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-04 Describe the
major steps in the construction of an
investment portfolio.
75.
Award: 10.00 points
76.
Award: 10.00 points
The Volcker Rule:
prohibits banks from proprietary trading.
restricts banks’ investments in hedge funds.
restricts banks’ investments in private equity funds.
All of the choices are correct.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-06 Explain the
causes and consequences of the financial
crisis of 2008–2009.
Until 1999, the _______ Act separated commercial banking and investment banking activities.
Dodd-Frank Wall Street Reform and Consumer Protection
Sarbanes-Oxley
Glass-Steagall
Volcker Rule
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-06 Explain the
causes and consequences of the financial
crisis of 2008–2009.
77.
Award: 10.00 points
78.
Award: 10.00 points
The difference between LIBOR and the Treasury-bill rate:
is called the TED spread.
measures credit risk in the banking sector.
was very low just before the 2008 financial crisis.
All of the choices are correct.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-06 Explain the
causes and consequences of the financial
crisis of 2008–2009.
The Dodd-Frank Reform Act does all of the following except:
reduces capital requirements for banks.
limits the risk-taking in which banks can engage.
requires public companies to set "claw-back" provisions.
creates an office within the SEC to oversee credit rating agencies.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-06 Explain the
causes and consequences of the financial
crisis of 2008–2009.
79.
Award: 10.00 points
Which insurance company sold more than $400 billion of CDS contracts on subprime mortgages
prior to the 2008 market crash?
Metlife
AIG
Northwestern Mutual
New York Life
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-06 Explain the
causes and consequences of the financial
crisis of 2008–2009.