1. In a recession, tax payments tend to increase and transfer payments tend to decrease. T/F
2. By engaging in "maturity transformation" commercial banks transfer risk due to interest rate changes from themselves to the depositors. T/F
3. after the 2008 financial crisis, interest rates on government bonds from Greece and Spain fell and have stayed relatively low. T/F
4. The US Banking crisis in 2008 as different than banking crises in Sweden, Finland and Japan. In these three countries the crises were due to real estate bubbles, but in the us the crisis was due to a large increase in the price of oil. T/F
5. with "financial contagion" problems in one bank will allow greater profits to be earned by other banks as they get the customers of the troubled bank. T/F
6. Shadow banking involves locating banking facilities in foreign countries to avoid regulation. T/F
7. A "credit crunch" occurs when lenders provide loans to unqualified borrowers who are unlikely to be able to repay the loan. T/F