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In Fed We Trust by David Wessel
Contributed by: Collier
  • 1. In Fed We Trust: Ben Bernanke's War on the Great Panic is a compelling exploration of the unprecedented measures taken by the Federal Reserve in response to the 2008 financial crisis, authored by David Wessel. The book delves into the pivotal role played by then-Fed Chairman Ben Bernanke, who drew upon his extensive knowledge of the Great Depression and the limits of monetary policy to navigate the economy through tumultuous waters. Wessel provides a detailed account of the tools employed by the Fed, such as quantitative easing and emergency lending facilities, while also illuminating the debates and controversies that surrounded these actions. The narrative is rich with insights into the Fed's inner workings, the challenges faced by policymakers, and the profound effects of their decisions on the global economy. Through a blend of analysis and storytelling, Wessel not only explains the intricacies of monetary policy but also questions the implications of such measures for the future of economics, democracy, and international finance. Overall, 'In Fed We Trust' serves as an essential read for anyone seeking to understand the complexities of financial crises and the critical role of central banking in stabilizing economies in distress.

    What is the main subject of 'In Fed We Trust'?
A) The history of American banking
B) Personal finance management
C) The Federal Reserve's response to the 2008 financial crisis
D) The creation of the Federal Reserve System
  • 2. Who was the Fed Chairman during the 2008 crisis?
A) Paul Volcker
B) Alan Greenspan
C) Ben Bernanke
D) Janet Yellen
  • 3. Which investment bank collapsed in 2008?
A) Morgan Stanley
B) JPMorgan Chase
C) Goldman Sachs
D) Lehman Brothers
  • 4. What does TARP stand for?
A) Treasury Assistance Relief Program
B) Troubled Asset Relief Program
C) Temporary Asset Recovery Plan
D) Total Asset Recovery Program
  • 5. Who was Treasury Secretary during the crisis?
A) Robert Rubin
B) Timothy Geithner
C) Henry Paulson
D) Larry Summers
  • 6. When was the Federal Reserve created?
A) 1971
B) 1945
C) 1929
D) 1913
  • 7. What was the main cause of the financial crisis?
A) Subprime mortgage crisis
B) Trade deficits
C) High inflation
D) Government overspending
  • 8. Which government agency regulates banks?
A) SEC
B) FBI
C) FDIC
D) IRS
  • 9. What is the discount window?
A) Mortgage application process
B) Bank customer service
C) Stock trading platform
D) Fed lending to banks
  • 10. What does FDIC insure?
A) Real estate
B) Corporate bonds
C) Bank deposits
D) Stock investments
  • 11. What is the federal funds rate?
A) Credit card APR
B) Mortgage interest rate
C) Government bond yield
D) Interest rate banks charge each other
  • 12. Who appoints Fed governors?
A) Congress
B) The President
C) The Supreme Court
D) The Treasury Secretary
  • 13. Which company received the largest bailout?
A) Bank of America
B) General Motors
C) Citigroup
D) AIG
  • 14. What is the FOMC?
A) Federal Operations Management Center
B) Financial Oversight Management Council
C) Financial Operations Monitoring Committee
D) Federal Open Market Committee
  • 15. What was the Dodd-Frank Act?
A) Housing assistance program
B) Bank bailout program
C) Tax cut package
D) Financial reform legislation
  • 16. What is the main theme of 'In Fed We Trust'?
A) History of US currency
B) International trade policy
C) Personal finance advice
D) Unprecedented Fed power during crisis
  • 17. What role did Ben Bernanke's academic background play?
A) He was a military strategist
B) He studied the Great Depression
C) He was a lawyer
D) He was a medical doctor
  • 18. What does the term 'moral hazard' refer to in the context of the book?
A) The risk of political corruption
B) The risk that rescued institutions will take more risks
C) The hazard of telling lies
D) The danger of natural disasters
  • 19. What is the dual mandate of the Fed?
A) Education and healthcare
B) Environmental protection and trade
C) National security and economic growth
D) Maximum employment and stable prices
  • 20. Which institution did the Fed help rescue by facilitating its sale to JPMorgan Chase?
A) Bear Stearns
B) Washington Mutual
C) Lehman Brothers
D) Wachovia
  • 21. How did the Fed respond to the commercial paper market freeze?
A) Lowered mortgage rates
B) Closed the stock market
C) Issued new currency
D) Created Commercial Paper Funding Facility
  • 22. How did the Fed address bank liquidity problems?
A) Closing weak banks
B) Importing foreign currency
C) Printing more money
D) Term Auction Facility
  • 23. How did the Fed's balance sheet change during the crisis?
A) It was eliminated
B) It expanded dramatically
C) It shrank significantly
D) It remained stable
  • 24. What regulatory changes followed the crisis?
A) Gramm-Leach-Bliley Act
B) Sarbanes-Oxley Act
C) Dodd-Frank Act
D) Volcker Rule only
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