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