Over time banks have become more efficient at using bank

Reference no: EM13907462

1. Gorton argues that regulating capital ratios cannot prevent a systemic run on banks. true or false ? why ?

2. Over time banks have become more efficient at using bank capital and thus use less of it relative to the assets they fund. The capital ratios in 2009 of US banks were lower than they were in the 1980s and 1990s. true or false ? why

3. We learn from Gorton's book that Ben Bernanke had no idea that the collapse of Lehman Brothers would disrupt the financial markets. true or false ? why ?

Reference no: EM13907462

Questions Cloud

The trailer department of baxter bicycles makes bike trailer : The Trailer department of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo.

We learn from gorton that it is not possible to prove : We learn from Gorton that it is not possible to prove that had Lehman Brothers been bailed out by the government or the Federal Reserve the financial crisis of 2008 would not have occurred. This is an example of not being able to prove the "counterfa..

What is the distribution of the time till the next epoch : What is the distribution of the time till the next epoch of N2(t) and what is the probability that the next epoch of N (t) is an epoch in N1(t)?

The limited liability of shareholders : According to Gorton; The limited liability of shareholders in a business creates moral hazard because owners can take risks that can benefit them at the potential expense of creditors. true or false ? why ?

Over time banks have become more efficient at using bank : Over time banks have become more efficient at using bank capital and thus use less of it relative to the assets they fund. The capital ratios in 2009 of US banks were lower than they were in the 1980s and 1990s. true or false ? why

Prepare fred pearsons report to mr mckay : You are required to prepare Fred Pearson's report to Mr McKay. Your report should incorporate. The relative profitability of each option. The break-even point and margin of safety.

Continental bank of illinois was bailed out : Continental Bank of Illinois was bailed out before a banking crisis occurred. Regulators thought that Continental was too big to fail. true or false ? why ?

Heart and home properties is developing a subdivision : Heart and Home Properties is developing a subdivision that includes 600 home lots.

Anyone involved with american health care : Anyone involved with American health care probably knows that our spending is out of control. We experience far greater medical spending than any other nation. Just how much do we spend on health care in America

User Account

All Pages