6. A credit-driven bubble arises when _______in lending causes _______in asset prices which can cause _______in lending.

Bank
reserves include

Bank
loans from the Federal Reserve are called _______and represent a
______of funds.

Because
checking accounts are liquid for the depositor than passbook savings,
they earn interest rates.

Which
of the following statements is false?

A
clause in a debt contract requiring that the borrower purchase
insurance against loss of the asset financed with the loan is called
a

Equity
contracts account for a small fraction of external funds raised by
American businesses because

The
principal-agent
problem

The
concept of adverse selection helps to explain all of the following
except

The
presence of ________ in financial markets leads to adverse selection
and moral hazard  


problems
that interfere with the efficient functioning of financial markets.

The
current structure of financial markets can be best understood as the
result of attempts by financial market participants to