6. _______ is a process of bundling together smaller loans ( ) into standard debt securities.

9. Credit market problems of adverse selection and moral hazard increased as a result of all of the following except

8. Agency problems in the subprime mortgage market included all of the following except

7. The growth of the subprime mortgage market led to

6. _______ is a process of bundling together smaller loans ( ) into standard debt securities.

5. A substantial decrease in the aggregate price level that reduces firmsʹ net worth may stall a recovery from a recession. This process is called

4. When financial intermediaries deleverage, firms cannot fund investment opportunities resulting in

3.In addition to having a direct effect on increasing adverse selection problems, increases in interest rates also promote financial crises by_____firmsʹ and householdsʹ interest payments, thereby_______their cash flow.

2.A bank panic can lead to a severe contraction in economic activity due to

1.A financial crisis occurs when an increase in asymmetric information from a disruption in the financial system

10. Financial innovation has caused