Chapter 25 Multiple-choice questions

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. The economic crisis in Europe began to unfold following difficulties in the subprime mortgage market in which country?

France correct incorrect

USA correct incorrect

China correct incorrect

Greece correct incorrect

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. How much money did EU leaders pledge to support European banks in October 2008?

€2 billion correct incorrect

€3 billion correct incorrect

€2 trillion correct incorrect

€3 trillion correct incorrect

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. What is the name of the permanent euro area assistance fund, the legal basis of which was amended into the Lisbon Treaty?

European Stability Mechanism correct incorrect

The Fiscal Compact correct incorrect

The Banking Union correct incorrect

The European Monetary Fund correct incorrect

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. The European Commission provided administrative resources to the Greek authorities. Which other two institutions have assisted with the Greek implementation of financial assistance packages?

European Central Bank and European Council correct incorrect

European Central Bank and International Monetary Fund correct incorrect

European Central Bank and Eurogroup correct incorrect

International Monetary Fund and European Council correct incorrect

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. In which year did the euro area first enter a period of recession?

2011 correct incorrect

2010 correct incorrect

2009 correct incorrect

2008 correct incorrect

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. What is the Eurogroup?

Another term for 'euro area' correct incorrect

Another term for the ECOFIN Council correct incorrect

The grouping of euro area finance ministers correct incorrect

The grouping of the German, French, and British finance ministers. correct incorrect

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. Since the economic crisis broke out, which of the following is the most accurate?

Heads of state and government have become less involved in the governance of EMU. correct incorrect

The role of heads of state and government has not changed with respect to the governance of EMU. correct incorrect

Heads of state and government have become more involved in the governance of EMU since the end of the 1990s. correct incorrect

There is no role for heads of state and government in the governance of EMU. correct incorrect

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. Which of the following institutions acts as the 'watchdog' for euro area governance?

Commission correct incorrect

European Parliament correct incorrect

EU Council (ECOFIN) correct incorrect

European Central Bank correct incorrect

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. In what year did the fiscal stimulus package of 2008 produce a resumption of real GDP growth in the euro area?

The second quarter of 2009 correct incorrect

The third quarter of 2010 correct incorrect

The third quarter of 2009 correct incorrect

The second quarter of 2010 correct incorrect

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. According to Moravcsik, how did the national governments respond to stabilize the single currency?

With overwhelming determination correct incorrect

With surprising stubbornness correct incorrect

With remarkable flexibility correct incorrect

With unparalleled motivation correct incorrect