TM - Chapter 2 Quiz

The Quantitative Easing done by the Federal Reserve during the great recession used which monetary policy tool?

Buying bonds by the Federal Open Market Operations of the Fed

The Monetary Control Act of 1980 assisted in loosening the economy by

Reducing float int eh payment system

Breaking the buck refers to

Not permitting MMF to go below $1 NAV in most circumstances

"In case of bankruptcy, what is the order of payment for the following: 1-Bankruptcy Trustee, 2-Senior Debt, 3- Common Shareholders, 4-Taxes owed, 5-Subordinated bond holders"

- 2, 1, 4, 5, 3 - senior debt --> bankruptcy trustee --> taxes owed --> subordinated bondholders --> common shareholders

The Glass Steagall Act was basically repealed through which act of Congress?

Allowing Financial Holding Companies