In Standard Circumstances a Firm __________ When Its __________

question 55

Multiple Choice

In standard circumstances a firm __________ when its __________.In financial markets this approach didn't work following the ____.

• A)files for bankruptcy;liabilities exceed its assets;collapse of Lehman Brothers
• B)sells its assets at fire sale prices;profits are negative;AIG debacle
• C)increases its risky holdings;revenues fall;volatility of exchange rates in Japan
• D)borrows liquidity from the Fed;its leverage ratio rises above 75;passage of the TARP legislation
• E)outsources its labor;net revenues are negative;purchase of Merrill Lynch by the Bank of America

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Definitions:

Filipinos

Refers to the people originating from or living in the Philippines, a Southeast Asian country.

Indian New Deal

Phrase that refers to the reforms implemented for Native Americans during the New Deal era. John Collier, the commissioner of the Bureau of Indian Affairs (BIA), increased the access Native Americans had to relief programs and employed more Native Americans at the BIA. He worked to pass the Indian Reorganization Act. However, the version of the act passed by Congress was a much diluted version of Collier’s original proposal and did not greatly improve the lives of Native Americans.

Forced Assimilation

The process where individuals or groups are compelled to abandon their own culture, language, or identity to conform to those of a dominating or majority culture.

Dawes Act

Law passed in 1887 meant to encourage adoption of white norms among Indians; broke up tribal holdings into small farms for Indian families, with the remainder sold to white purchasers.