Coursera

Warning: The hard deadline has passed. You can attempt it, but you will not get credit for it. You are welcome to try it as a learning exercise.

In accordance with the Coursera Honor Code, I (KK Fong) certify that the answers here are my own work.

Question 1

Which of the following is NOT a characteristic of shadow banking?

Sharp separation of capital market and money market

Money market funding

Global funding of local lending

Capital market lending

Question 2

The following statements about traditional and shadow banking are all correct EXCEPT...?

Funding liquidity implies market liquidity

The FDIC provides capital backstop for the traditional banking system

The traditional banking system provided the immediate liquidity backstop for the shadow banking system

The Fed provides liquidity backstop for the traditional banking system

Question 3

For smooth operation of the new market-based credit system, fluctuation in the value of RMBS requires all of the following EXCEPT...?

Liquidity backstop for both money dealers and risk dealers

Both funding and market liquidity backstops

Elimination of counterparty risk through "too-big-to-fail"

Ability of ultimate risk holder to absorb losses

Question 4

All of the following are aspects of the "money view" EXCEPT...?

Emphasizes liquidity and the survival constraint

Recognizes the important role of the central bank as ultimate provider of funding liquidity

Focuses on the problem of meeting cash commitments in a timely manner

Explains current asset prices as a consequence of expected future values

Question 5

Which of the following statements is MOST accurate?

Over the last thirty years, the central debate in economic discourse has been mostly between the finance view and the money view

The economics view is characterized by the notion income today results from capital investments in the past

The finance view and the economic view are quite similar, while the money view presents a stark contrast

The defining characteristic of the money view is that past promises are no constraint to current spending

Question 6

Which of the following statements is MOST consistent with the views of Fischer Black?

The Fed should cut interest rates during business recessions in order to move the economy toward full employment

The Fed should target inflation by adjusting the interest rate

The Fed should increase the money supply at a constant rate of growth

The operations of the Fed have little effect on the broader economy, or are counterproductive

In accordance with the Coursera Honor Code, I (KK Fong) certify that the answers here are my own work.

You cannot submit your work until you agree to the Honor Code. Thanks!

Economics of Money and Banking, Part Two

Top Navigation Bar

Economics of Money and Banking, Part Two
by Perry G Mehrling

Side Navigation Bar

About the course

Course

Exercises

Community

Quiz 5 Help Center

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Economics of Money and Banking, Part Two

Economics of Money and Banking, Part Twoby Perry G Mehrling

Quiz 5 Help Center

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Confirm Navigation

Economics of Money and Banking, Part Two
by Perry G Mehrling