10/27/2026,
xam 3 - Student
10/27/2026,
3:41:20
MC@#&&*#&()&(*&)*$*)($*)*@($*(*@)$(*@$(&(*$$(&*$($2ZOIZHxh-2Page
AM~~~~~~())))))))))))))(@)(*@U*(ECON103
4:25:30 AMECON103 Exam 3 - Student MC10/27/2026,
Exam 3 - Student
3:41:20
MC@#&&*#&()&(*&)*$*)($*)*@($*(*@)$(*@$(&(*$$(&*$($2ZOIZHxh-2Page
AM~~~~~~())))))))))))))(@)(*@U*(ECON103
1 of 11ECON103 Exam 3 - Student MC.pdf10/27/2026,
Exam 3 - Student3:41:39
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AM1 of 11EC
ECON103 Exam 3 - Student MC
Who was the president during the years 1971 and 1981 when the dollar lost more
than half of its value?
A. James Polk
B. Jimmy Carter
C. JFK
D. Calvin Coolidge
E. Ronald Reagan - ANSWERS-B
Which of the following could have been done to possibly stop the 2008 market
crisis? (Select all that apply)
A. Use of the Home Ownership and Equity Protection Act by the Federal Reserve
B. People could have put down smaller down payments on their homes so they
would have more savings when they walked away
C. Mortgage lenders/bankers/traders could have been more transparent and ethical
about the quality of the loans in the securities/bonds
D. More strict mortgage underwriting guidelines
E. Continues investment into high-risk assets as they were becoming cheaper to
invest in - ANSWERS-A, C, D
What happened to the U.S. dollar after Nixon mandated the abandoning the Bretton
Woods system in 1971?
A. The dollar increased in value over the next 10 years and saved the U.S. economy
millions getting rid of an outdated system
B. The dollar lost nearly half of its value over the next decade due to inflation, and
the Fed chairman was reluctant to raise rates and prices and unemployment
drastically increased.
C. Nixon saved the economy and after one year the Bretton Woods system was
reinstated back into law and is still what we use today.
D. The dollar decreased in value over the next 10 years causing inflation and
unemployment to decrease
E. None of the above - ANSWERS-B
Why did the Federal Reserve give funding to big banks instead of regulate their
subprime mortgages in the years preceding 2008?
A. The big banks were helping smaller banks establish themselves.
B. If the big banks went bankrupt, they would take down the whole market.
C. Banks such as Lehman Brothers were already properly regulated.
D. The Fed did not yet have authority to regulate mortgage lenders early in the
decade.
E. The banks had not yet started giving away free loans. - ANSWERS-B
10/27/2026,
xam 3 - Student
10/27/2026,
3:41:20
MC@#&&*#&()&(*&)*$*)($*)*@($*(*@)$(*@$(&(*$$(&*$($2ZOIZHxh-2Page
AM~~~~~~())))))))))))))(@)(*@U*(ECON103
4:25:30 AMECON103 Exam 3 - Student MC10/27/2026,
Exam 3 - Student
3:41:20
MC@#&&*#&()&(*&)*$*)($*)*@($*(*@)$(*@$(&(*$$(&*$($2ZOIZHxh-2Page
AM~~~~~~())))))))))))))(@)(*@U*(ECON103
1 of 11ECON103 Exam 3 - Student MC.pdf10/27/2026,
Exam 3 - Student3:41:39
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AM1 of 11EC
,10/27/2026,
xam 3 - Student
10/27/2026,
3:41:20
MC@#&&*#&()&(*&)*$*)($*)*@($*(*@)$(*@$(&(*$$(&*$($2ZOIZHxh-2Page
AM~~~~~~())))))))))))))(@)(*@U*(ECON103
4:25:30 AMECON103 Exam 3 - Student MC10/27/2026,
Exam 3 - Student
3:41:20
MC@#&&*#&()&(*&)*$*)($*)*@($*(*@)$(*@$(&(*$$(&*$($2ZOIZHxh-2Page
AM~~~~~~())))))))))))))(@)(*@U*(ECON103
2 of 11ECON103 Exam 3 - Student MC.pdf10/27/2026,
Exam 3 - Student3:41:39
MC@#&&*#&()&(*&
AM2 of 11EC
In a healthy economy, growth should primarily be due to ______
A. Increased spending due to increased income through employment
B. Increased spending due to high levels of borrowing and very low interest rates
C. Decreased employment
D. Increased minimum wage
E. Decreased purchasing power of the dollar - ANSWERS-A
Which of the following events is/are correctly paired with the actions of the Federal
Reserve that caused them? (Select all that apply.)
A. The Great Inflation: Maintaining low interest rates to support the vision of "The
Great Society"
B. The Great Moderation: Tight regulation of lenders
C. The Great Depression: Maintaining the gold standard by lowering rates
D. The Recession of 1981: A decrease in the money supply
E. The bank panic of 1907: A sharp increase in interest rates - ANSWERS-A, D
In the history of the Federal Reserve, which of the following has the MOST influence
on monetary policy decisions?
A. The federal government
B. Opinions of the general public
C. The chairman of the Federal Reserve
D. Large corporations
E. The market economy - ANSWERS-C
During the 2008 recession, why did the Federal Reserve allow the Lehman Brothers
firm to collapse?
A. They were the biggest firm on Wall Street
B. They were under investigation for tax fraud
C.The Fed thought that the economy would self correct
D.The Fed thought they could not be saved
E. The Fed had larger connections to other firms - ANSWERS-C
Which of the following contributed to the creation of the housing bubble?
A. Low inflation
B. A prolonged period of low interest rates
C. Low demand for mortgages
D. Expectations of high interest rates
E. Regulatory policies from The Fed - ANSWERS-B
In 2008, there was a global economic downturn that devastated world financial
markets as well as the banking and real estate industries. This economic recession
is known as the Great Recession. Which was the one of the leading causes of this
downturn in the United States?
10/27/2026,
xam 3 - Student
10/27/2026,
3:41:20
MC@#&&*#&()&(*&)*$*)($*)*@($*(*@)$(*@$(&(*$$(&*$($2ZOIZHxh-2Page
AM~~~~~~())))))))))))))(@)(*@U*(ECON103
4:25:30 AMECON103 Exam 3 - Student MC10/27/2026,
Exam 3 - Student
3:41:20
MC@#&&*#&()&(*&)*$*)($*)*@($*(*@)$(*@$(&(*$$(&*$($2ZOIZHxh-2Page
AM~~~~~~())))))))))))))(@)(*@U*(ECON103
2 of 11ECON103 Exam 3 - Student MC.pdf10/27/2026,
Exam 3 - Student3:41:39
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AM2 of 11EC
xam 3 - Student
10/27/2026,
3:41:20
MC@#&&*#&()&(*&)*$*)($*)*@($*(*@)$(*@$(&(*$$(&*$($2ZOIZHxh-2Page
AM~~~~~~())))))))))))))(@)(*@U*(ECON103
4:25:30 AMECON103 Exam 3 - Student MC10/27/2026,
Exam 3 - Student
3:41:20
MC@#&&*#&()&(*&)*$*)($*)*@($*(*@)$(*@$(&(*$$(&*$($2ZOIZHxh-2Page
AM~~~~~~())))))))))))))(@)(*@U*(ECON103
1 of 11ECON103 Exam 3 - Student MC.pdf10/27/2026,
Exam 3 - Student3:41:39
MC@#&&*#&()&(*&
AM1 of 11EC
ECON103 Exam 3 - Student MC
Who was the president during the years 1971 and 1981 when the dollar lost more
than half of its value?
A. James Polk
B. Jimmy Carter
C. JFK
D. Calvin Coolidge
E. Ronald Reagan - ANSWERS-B
Which of the following could have been done to possibly stop the 2008 market
crisis? (Select all that apply)
A. Use of the Home Ownership and Equity Protection Act by the Federal Reserve
B. People could have put down smaller down payments on their homes so they
would have more savings when they walked away
C. Mortgage lenders/bankers/traders could have been more transparent and ethical
about the quality of the loans in the securities/bonds
D. More strict mortgage underwriting guidelines
E. Continues investment into high-risk assets as they were becoming cheaper to
invest in - ANSWERS-A, C, D
What happened to the U.S. dollar after Nixon mandated the abandoning the Bretton
Woods system in 1971?
A. The dollar increased in value over the next 10 years and saved the U.S. economy
millions getting rid of an outdated system
B. The dollar lost nearly half of its value over the next decade due to inflation, and
the Fed chairman was reluctant to raise rates and prices and unemployment
drastically increased.
C. Nixon saved the economy and after one year the Bretton Woods system was
reinstated back into law and is still what we use today.
D. The dollar decreased in value over the next 10 years causing inflation and
unemployment to decrease
E. None of the above - ANSWERS-B
Why did the Federal Reserve give funding to big banks instead of regulate their
subprime mortgages in the years preceding 2008?
A. The big banks were helping smaller banks establish themselves.
B. If the big banks went bankrupt, they would take down the whole market.
C. Banks such as Lehman Brothers were already properly regulated.
D. The Fed did not yet have authority to regulate mortgage lenders early in the
decade.
E. The banks had not yet started giving away free loans. - ANSWERS-B
10/27/2026,
xam 3 - Student
10/27/2026,
3:41:20
MC@#&&*#&()&(*&)*$*)($*)*@($*(*@)$(*@$(&(*$$(&*$($2ZOIZHxh-2Page
AM~~~~~~())))))))))))))(@)(*@U*(ECON103
4:25:30 AMECON103 Exam 3 - Student MC10/27/2026,
Exam 3 - Student
3:41:20
MC@#&&*#&()&(*&)*$*)($*)*@($*(*@)$(*@$(&(*$$(&*$($2ZOIZHxh-2Page
AM~~~~~~())))))))))))))(@)(*@U*(ECON103
1 of 11ECON103 Exam 3 - Student MC.pdf10/27/2026,
Exam 3 - Student3:41:39
MC@#&&*#&()&(*&
AM1 of 11EC
,10/27/2026,
xam 3 - Student
10/27/2026,
3:41:20
MC@#&&*#&()&(*&)*$*)($*)*@($*(*@)$(*@$(&(*$$(&*$($2ZOIZHxh-2Page
AM~~~~~~())))))))))))))(@)(*@U*(ECON103
4:25:30 AMECON103 Exam 3 - Student MC10/27/2026,
Exam 3 - Student
3:41:20
MC@#&&*#&()&(*&)*$*)($*)*@($*(*@)$(*@$(&(*$$(&*$($2ZOIZHxh-2Page
AM~~~~~~())))))))))))))(@)(*@U*(ECON103
2 of 11ECON103 Exam 3 - Student MC.pdf10/27/2026,
Exam 3 - Student3:41:39
MC@#&&*#&()&(*&
AM2 of 11EC
In a healthy economy, growth should primarily be due to ______
A. Increased spending due to increased income through employment
B. Increased spending due to high levels of borrowing and very low interest rates
C. Decreased employment
D. Increased minimum wage
E. Decreased purchasing power of the dollar - ANSWERS-A
Which of the following events is/are correctly paired with the actions of the Federal
Reserve that caused them? (Select all that apply.)
A. The Great Inflation: Maintaining low interest rates to support the vision of "The
Great Society"
B. The Great Moderation: Tight regulation of lenders
C. The Great Depression: Maintaining the gold standard by lowering rates
D. The Recession of 1981: A decrease in the money supply
E. The bank panic of 1907: A sharp increase in interest rates - ANSWERS-A, D
In the history of the Federal Reserve, which of the following has the MOST influence
on monetary policy decisions?
A. The federal government
B. Opinions of the general public
C. The chairman of the Federal Reserve
D. Large corporations
E. The market economy - ANSWERS-C
During the 2008 recession, why did the Federal Reserve allow the Lehman Brothers
firm to collapse?
A. They were the biggest firm on Wall Street
B. They were under investigation for tax fraud
C.The Fed thought that the economy would self correct
D.The Fed thought they could not be saved
E. The Fed had larger connections to other firms - ANSWERS-C
Which of the following contributed to the creation of the housing bubble?
A. Low inflation
B. A prolonged period of low interest rates
C. Low demand for mortgages
D. Expectations of high interest rates
E. Regulatory policies from The Fed - ANSWERS-B
In 2008, there was a global economic downturn that devastated world financial
markets as well as the banking and real estate industries. This economic recession
is known as the Great Recession. Which was the one of the leading causes of this
downturn in the United States?
10/27/2026,
xam 3 - Student
10/27/2026,
3:41:20
MC@#&&*#&()&(*&)*$*)($*)*@($*(*@)$(*@$(&(*$$(&*$($2ZOIZHxh-2Page
AM~~~~~~())))))))))))))(@)(*@U*(ECON103
4:25:30 AMECON103 Exam 3 - Student MC10/27/2026,
Exam 3 - Student
3:41:20
MC@#&&*#&()&(*&)*$*)($*)*@($*(*@)$(*@$(&(*$$(&*$($2ZOIZHxh-2Page
AM~~~~~~())))))))))))))(@)(*@U*(ECON103
2 of 11ECON103 Exam 3 - Student MC.pdf10/27/2026,
Exam 3 - Student3:41:39
MC@#&&*#&()&(*&
AM2 of 11EC
