Question

True or False: and why

1-Mortgages were a larger proportion of bank assets during the Credit Crisis than now.

2-During the Credit Crisis, the Federal Reserve took almost three months to develop an adequate plan to deal with the incredible challenges facing it.

3-Central banks around the world are government organizations that are meant to report to and be accountable to their respective legislatures to ensure they are always doing what is best for the populace.

4- Stockholders are considered to have a preferred claim on a company's cash flows.

Answer 1

1; True; Banks were extensively trading on mortgage related financial products which led to 2008 crisis. Currently the mortgage share is less than before.

2: True; Federal reserve took some time to implement QE, and other relaxation measures

3: True: although independend central banks should periodically report to and are accountable to the legislation

4: False; Preferred share holders have a preferred claim over the dividends than common share holder. Common shareholder will be having the last claim of company's cashflow. ie: no preffered claim