Banking Crises Throughout the World
1) As in the United States, an important factor in the banking crises in Norway, Sweden, and
Finland was the
A) financial liberalization that occurred in the 1980s.
B) decline in real interest rates that occurred in the 1980s.
C) high inflation that occurred in the 1980s.
D) sluggish economic growth that occurred in the 1980s.
2) As in the United States, an important factor in the banking crises in Latin America was the
A) financial liberalization that occurred in the 1980s.
B) decline in real interest rates that occurred in the 1980s.
C) high inflation that occurred in the 1980s.
D) sluggish economic growth that occurred in the 1980s.
3) The Argentine banking crisis of 2001 resulted from Argentina”s banks being required to
A) purchase large amounts of government debt.
B) pay back the value of failed loans.
C) make risky real estate loans.
D) make loans to only state owned businesses.
4) When comparing the banking crisis in the United States to the crises in Latin America, cost to the taxpayers of the government bailouts was
A) higher in Latin American than in the United States.
B) higher in the United States than in Latin America.
C) about the same in both Latin America and the United States.
D) positive in Latin America but negative in the United States.