What is a a loan given by a bank or other financial institution for the purchase of a primary or investment residence
What is a house mortgage
100
Which of the following is a rating agency: Citigroup, Moody's, AIG
What is Moody's
100
Before the 1980's who's money did the banks use in their investments
What is their own money
100
In the 1990's what fueled a massive bubble in stocks?
What is the internet
100
A very large part of the money for the bailout came from ____________
What is taxpayers.
200
What is the monetary value of all the finished goods and services produced within a country's borders in a year
What is Gross Domestic Product
200
Goldman Sachs is an example of a
What is an investment bank
200
After the_____________ ____________ there were 40 years of economic prosperity without a single financial crisis
What is the Great Depression
200
In the deregulated period (post 80's) many lenders began to sell the loans they had given to ____________
What is investment banks
200
Who could buy a credit default swap against a CDO
What is Everybody and their mama
300
What is a financial intermediary that performs a variety of services. This includes buying debt and often selling it to public investors
What is Investment Bank
300
Name a security insurance company
What is AIG or MBIA or AMBAC
300
In the 1980's several banks offered IPO's which stands for
What is Initial Public Offerings
300
Who were rating agencies paid by?
What is investment banks
300
The US Government allowed investment banks to increase their debt to equity ratios to ____:1
What is 33:1
400
What is the use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment.
What is debt leverage
400
Name 3 rating agencies
What is Moody’s Standard & Poor’s Fitch
400
In 1982 the US government started a 30 year period of financial ________________
What is deregulation
400
In the financial food chain, fill in the 5 key players in the following format:
___ ____ ____ _____
l l l l l l l l
----- ------ ------ --------
____
l l
------
What is home buyers, lenders, investment banks, investors
rating agencies
400
The financial sector in America has more of these in Washington D.C. than any other organization in the US.
What is ATM's....just kidding Lobbyists.
500
What is a type of insurance that can be bought against other financial investments
What is a Credit Default Swap
500
Name 5 investment banks
What is Goldman Sachs Morgan Stanley Lehman Brothers
Merrill Lynch Bear Stearns
500
By the 1990's several banks had emerged into a few large conglomerates. This was dangerous. What analogy did we look at as to why financial institutes should not be so large?
What is an oil tanker
500
Illustrate the following using a supply and demand schedule
-Since nearly everyone could get a loan for a house, the price of houses greatly increased.
What is Supply shifts to the right or outward causing a rise in equilibrium price.
500
In 2008 the Gov. argued that the financial sector was too large to fail and gave a $_____________________ billion bailout plan.