Author Question: What key area does Wade suggest should be watched in terms of gauging the robustness of governmental ... (Read 13 times)

armygirl · **on:** Sep 10, 2018

What key area does Wade suggest should be watched in terms of gauging the robustness of governmental responses to the crisisan area that Warren Buffet described as financial weapons of mass destruction?

a. the securities market
b. foreign exchange rates
c. central bank inflation policy
d. the size of housing market assets held by banks
e. the market for over-the-counter derivative contracts

Question 2

As explained by Wade, capital flows connected to shifts in macroeconomic and financial conditions in the major industrial economies will bring about what negative consequence?

a. amplified boom and bust cycles
b. greater rates of bank insolvency
c. less transparency in true bank asset values
d. reduced ability of shareholders to know the true value of their assets
e. reduced capability by banks to raise new capital at high cost or reduce lending to remain solvent