4/27/2021 Practice Quiz M5 (Ungraded)

My courses ▶ (21/04) MScFE 660 Case Studies in Risk Management (C20-S1)

▶ Module 5: The 2008 Global Financial Crisis ▶ Practice Quiz M5 (Ungraded)

Started on Tuesday, 27 April 2021, 8:39 PM

State Finished
Completed on Tuesday, 27 April 2021, 8:40 PM
Time taken 44 secs

Question 1
Complete

Not graded

What major nancial requirement did developing countries have of America, the
UK and the Eurozone during the years leading up to the crisis?

Select one:
Contribute to their expanding subprime mortgage investments.
Integrate their currencies into the pound sterling or Euro markets.
Enforce developed world nancial policy in developing world settings.

Allow for free ow of capital.

Your answer is correct.

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4/27/2021 Practice Quiz M5 (Ungraded)

Question 2

Complete

Not graded

What is a strategic default?

Select one:
A default to evade property taxes
A default by investors who choose to default rather than pay installments
on a mortgage worth more than the underlying asset

Both A and B
None of the above

Your answer is incorrect.

Question 3

Complete
Not graded

What does ‘too big to fail’ refer to?

Select one:
Companies that would have collapsed the entire economy if they were not
bailed out.
The developed world economies that were larger than the developing
world.
The government and its social spending de cit.
The budget de cits in Europe.

Your answer is correct.

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4/27/2021 Practice Quiz M5 (Ungraded)

Question 4

Complete

Not graded

What did the IMF have as a major condition for any national bailout for the
European debt crisis?

Select one:
A complete removal of the defense and foreign affairs budget allowance.
Removal from the Eurozone until the crisis ended.

The complete suspension of government powers over economic policy in

favor of the IMF.
Austerity measures in scal policy and money controls.

Your answer is incorrect.

Question 5

Complete
Not graded

What is important about the collapse of the Lehman Brothers rm?

Select one:
It shook con dence in the US nancial system
It was the sole rm to collapse as a result of the subprime mortgage crisis.
The losses accrued were the sole reason the Crisis began.
None of the above.

Your answer is correct.

◄ Notes 4 M5
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