Which of the following is not true (or is false) about TARP:…
Which of the following is not true (or is false) about TARP: A. US Treasury used TARP funds to purchase common stock in various banks. B. TARP helped stabilize the banking sector. C. TARP funds were originally intended to purchase toxic subprime assets off bank balance sheets. D. TARP preferred stock was senior to the bank’s common stock but junior to bank junior debt
Read DetailsIf the Federal Reserve wants to expand reserves in the banki…
If the Federal Reserve wants to expand reserves in the banking system, it will: A. purchase government securities. B. raise the discount rate. C. sell government securities. D. use open market operations to sell short-term debt to banks with the goal of raising the Fed Funds rate.
Read DetailsWhat is true about Fannie Mae and Ginnie Mae pass through mo…
What is true about Fannie Mae and Ginnie Mae pass through mortgage backed securities: A. Investors have prepayment risk which means many homeowners refinance when interest rates drop leaving MBS owners to reinvest loan repayment proceeds at lower yields, B. The special purpose vehicle holds the mortgages pays the monthly mortgage payments made by borrowers to the MBS owners, minus any homeowner defaults. C. Mortgage originators typically sell mortgages they originate to investment banks who package them into MBS.
Read DetailsWhich of the following is/are true: A. The Federal Reserve p…
Which of the following is/are true: A. The Federal Reserve performs bank examinations as part of its mandate. B. Financial Stability is outside the mandate of the Federal Reserve and instead is the sole responsibility of the US Treasury. C. The ECB’s location in Germany is due to Germany’s strong aversion to inflation. D. The Federal Reserve was established to regulate the money supply, maintain financial stability, and serve as a lender of last resort.
Read Details3. In the “Heed the Market” exercise, students in our class…
3. In the “Heed the Market” exercise, students in our class offered higher salaries to men than women candidates in markets where men, on average, had higher external offers. Notably, in a market where men and women had similar external offers, students in our class offered similar salaries to men and women. Does this salary gap reveal implicit bias (i.e., although people wouldn’t admit it, they unconsciously believe women should be offered less for the same job)? Does this salary gap reveal a stereotype threat (i.e., women candidates feel threatened during a salary negotiation and, hence, are less likely to ask for more)? What else could have caused the salary gap?
Read Details7. People hold multiple goals (e.g., doing well in school, w…
7. People hold multiple goals (e.g., doing well in school, working out regularly, socializing). In addressing the motivational challenges caused by having multiple goals: Suggest one behavioral intervention that increases people’s motivation to address multiple goals of similar importance. Suggest one behavioral intervention to help people focus on high-priority goals while avoiding low-priority goals (or temptations).
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