Solutions
The Stock Market
Business Cycle
Financial System
How we got into this mess
100
Money given by the government to failing banks and businesses to prevent bankruptcy
What is the bailout?
100
Shares of a company sold to investors
What are stocks?
100
The very top of the business cycle
What is the peak?
100
Business situation where there is no competition - one business controls the market
What is a monopoly?
100
Area in New York City where the countries major financial firms and stock exchange are located
What is Wall Street?
200
This poerson sponsored a bill to help homeowners avoid foreclosure. The bill was defeated
Who is Senator Richard Durbin?
200
Largest stock exchange in the US, with the initials NYSE
What is the New York Stock Exchange?
200
When the business cycle bottoms out
What is a trough?
200
Lack of government oversight and loosening of the rules for banks and investment firms
What is deregulation?
200
This financial institution lowered interest rates on government bonds and raised interest rates on mortgages
What is the Federal Reserve?
300
Money put into the economy through subsidies, tax cuts, and job creation in order to improve the economy
What is the stimulus?
300
Investors are willing to take this in order to gain a return
What is a risk?
300
A period of economic growth
What is an expansion?
300
As the government, or public sector, invests in the recovery, the hope is that this will take over the investment
What is the private sector?
300
This type of spending, where a country can spend more than it takes in, got us into a deep hole.
What is deficit?
400
Government program to purchase "troubled" assets from banks to prevent them from failing
What is TARP?
400
A newer, smaller US stock exchange where trading is done electronically
What is the NASDAQ?
400
A recession, or a time when the economy is shrinking, is also called
What is contraction?
400
Private investments made in the early stages of a business's development; investors are hoping to make large returns in a short time.
What is venture capital?
400
Companies like Morgan Stanley, Lehman Brothers, and Goldman-Sachs, whose decisions helped cause the financial meltdown
What are investment firms?
500
Building these physical and organizational structures will help create jobs for the US
What is infrastructure?
500
Grouping of the top US companies used to show the general trend of the market
What is the Dow Jones Industrial Average?
500
A time when the economy is neither growing nor shrinking
What is stagnation?
500
Government policy of keeping its hands off of business and letting businesses succeed or fail naturally
What is laissez-faire?
500
The housing bubble kicked off the crisis by promoting this type of home loans
What are sub-prime mortgages?
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