To Compensate for the Collapse of Intermediation and the Fragility

question 88

Multiple Choice

To compensate for the collapse of intermediation and the fragility of financial markets during the 2007-2009 financial crisis, central banks deployed all but which of the following unconventional tools:

• A) Forward guidance
• B) Lowering interbank lending interest rate targets
• C) Quantitative easing
• D) Targeted asset purchases

Differentiate between types of promises and agreements in the context of contractual obligation.

Understand the role of electronic communications in contract law and the validity of electronic contracts.

Understand the concept of utility and how it relates to income.

Learn the principles of risk assessment in financial decisions.

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Definitions:

Pay

The act of disbursing money in exchange for goods, services, or to fulfill any kinds of obligations.

1099 Forms

Tax forms used in the United States to report income from self-employment, interest, dividends, rents, and other sources of income.

SEC

The Securities and Exchange Commission, a U.S. government oversight agency responsible for regulating the securities markets and protecting investors.

IRS Form

Official documents published by the Internal Revenue Service for taxpayers to report financial information.