English Eco 9.27

Question 1

knee-jerk

Answer 1

impulsive, automatic, unthinking

ex: the knee-jerk policy reaction to the recent turmoil has been to blame the short-term debt.

Question 2

instigator

Answer 2

bring about or initiate

ex: short term liabilities were an instigator of the crisis

Question 3

at odds

Answer 3

in conflict or at variance

“his behaviour is at odds with the interests of the company”

Question 4

blanket

Answer 4

adj. covering all cases or instances

a blanket discouragement to short-term debt does not seem warranted.

Question 5

render

Answer 5

provide

ex: a reward for services rendered

Question 6

gestation

Answer 6

the process of carrying in the womb

ex: long gestation investment

Question 7

debris

Answer 7

scattered fragments, typically of something wrecked or destroyed
ex: the debris of a full-fledged financial crisis

Question 8

reconcile

Answer 8

restore friendly relations between

ex: a theory of banking that attempts to reconcile the functions of a bank

Question 9

ostensibly

Answer 9

appear to be true but not necessarily so
actions that ostensibly make banks more stable - such as higher capital requirements or complete government deposit insurance

Question 10

forego/forgo

Answer 10

omit, decline to take

ex: forego liquidation this period but reserve the right to do so next period

Question 11

precipitate

Answer 11

cause to happen suddenly, unexpectedly, or prematurely

ex: it precipitates runs that lead to a loss of the banker’s valuable services.