According to the Chairman of the Federal Reserve, Ben Bernanke

question 51

Multiple Choice

According to the chairman of the Federal Reserve, Ben Bernanke, which of the following contributed the most to the 2008 U.S. financial collapse?

• A) the September 11, 2001, terrorist attacks
• B) the election of Barack Obama
• C) deregulation of the financial industry
• D) the price of oil
• E) the balance-of-trade deficit

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Definitions:

Gini Coefficient

A measure of income inequality within a population, ranging from 0 (perfect equality) to 1 (perfect inequality).

Purchasing Power Parity

Purchasing Power Parity is an economic theory that compares different countries' currencies through a "basket of goods" approach, suggesting that exchange rates should adjust so that identical goods cost the same in different countries.

Market-based Economy

An economic system where decisions regarding investment, production, and distribution are guided by the price signals created by the forces of supply and demand.

Personal Wealth

The total value of all financial and non-financial assets owned by an individual minus any outstanding liabilities.