The Collapse of Lehman Brothers in 2008 and the Impact

question 51

Multiple Choice

The collapse of Lehman Brothers in 2008 and the impact of the global financial crisis made it difficult for Australian banks to obtain off-shore funding.As a consequence banks pursued more stable sources of funds.These strategies include:

• A)increased use of wholesale long-term funding
• B)decreased use of wholesale long-term funding
• C)decreased holdings of liquid assets
• D)decreased use of wholesale long-term funding and increased holdings of liquid assets

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Definitions:

Over Capacity

A situation where a facility or system can produce more than is demanded, often leading to inefficiency and increased costs.

Decline Stage

The phase in a product life cycle where sales and profits begin to decrease as the product starts to lose consumer interest or becomes obsolete.

OM Strategies

Operational management strategies employed by organizations to improve efficiency, productivity, and competitiveness in their operational processes.

Free Trade Agreement

A pact between two or more nations to reduce barriers to imports and exports among them, enhancing economic integration and trade.