Although the Great Recession Technically Ended in 2010, There Are

question 20

Multiple Choice

Although the Great Recession technically ended in 2010, there are long-term consequences still being felt; for instance, governments at the local, state, and federal level

• A) received large influxes of money by charging penalties to banks that had engaged in predatory lending practices.
• B) spent large amounts of tax money on services for the newly homeless.
• C) lost significant tax revenues, causing them to impose punitively high taxes.
• D) lost significant tax revenues, causing them to face serious budget shortfalls.

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Definitions:

Currency

A system of money in common use, especially in a nation, for facilitating the exchange of goods and services.

Excess Reserves

The capital reserves held by a bank or financial institution in excess of what is required by regulators, providing a cushion against potential financial instability or liquidity needs.

Banking System

The network of financial institutions that provide banking services, including accepting deposits, providing loans, and managing payment systems.

Fractional Reserve Banking

A banking system where banks hold only a fraction of the deposits as reserves, using the remainder for loans and advances.