Question

The U.S. government, in the year 2010, passed the _____ Act to prevent financial institutions from engaging in activities that can lead to financial crisis.

Select one:

Glass-Steagall

Dodd-Frank Wall Street Reform and Consumer Protection

Financial Institutions Reform, Recovery, and Enforcement

Gramm-Leach-Bliley

Question 7

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Suppose the economy is thought to be 1 percent below its potential output (i.e., the output gap is −1 percent). The potential output is growing at 4% a year. Suppose the Fed is following the Taylor rule, with an inflation rate of 4 percent over the past year. The equilibrium real fed funds rate is 3 percent, the weight on the output gap is 0.75 and the weigh on the inflation gap is 0.25. The inflation target is 1 percent. What should the federal funds rate be?

Select one:

8 percent

10 percent

9 percent

7 percent

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If a stock's price is $20 at the beginning of a year and $17 at the end of the year, and it pays a dividend of $2 during the year, then the stock's current yield is ____ percent.

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−5

10

−15

5

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The misery index is the sum of the

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unemployment rate and the output gap.

unemployment gap and the inflation gap.

unemployment rate and the inflation rate.

unemployment gap and the output gap.

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Suppose that a change in the expected inflation rate leads supply and demand to adjust so that the expected real interest rate is unchanged at 3.0 percent. The tax rate is 30 percent. Initially, the expected inflation rate is 6.0 percent. If the expected inflation rate falls from 6 percent to 0 percent, the after-tax expected real interest rate

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rises by 1.8 percent.

falls by 1.8 percent.

falls by 0.9 percent.

rises by 0.9 percent.

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Under the payoff method of handling a bank failure, the FDIC

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finds a buyer for the bank, giving the buyer the good assets of the bank, and assumes the bad loans of the bank.

takes over the bank and controls its operations.

closes the bank, sells off the assets, pays off insured depositors, and then pays off creditors of the bank if funds remain.

keeps the bank open and lends funds to it so that it is able to continue its operation.

Answer 1

Question: 7

The U.S. government, in the year 2010, passed the _____ Act to prevent financial institutions from engaging in activities that can lead to financial crisis.

Solution:

the correct option will be  Dodd-Frank Wall Street Reform and Consumer Protection

On 21 july 2010, the Dodd–Frank Wall Street Reform and Consumer Protection Act (commonly referred to as Dodd–Frank) was implemented (enacted) to prevent from the financial crisis i.e., Global financial crisis( 2008) for financial industries . So, to promote the financial stability U.S. govt. had adopted this act in 2010.