The 2008 Financial Crisis: Crash Course Economics #12

Front

What is the main topic of the Crash Course Economics video?

Back

The 2008 Financial Crisis

Front

What is the name of the program that initially earmarked $700 billion to shore up the banks during the 2008 Financial Crisis?

Back

TARP

Front

What did the Federal Reserve offer to do to prevent fundamentally sound banks from collapsing during the 2008 Financial Crisis?

Back

Make emergency loans to banks

Front

What did the Dodd-Frank law aim to do in response to the 2008 Financial Crisis?

Back

Increase transparency and prevent banks from taking on too much risk

Front

What is the term used to describe when one person takes on more risk because someone else bears the burden of that risk?

Back

Moral Hazard

Front

What did the bi-partisan, financial crisis inquiry commission report blame for the 2008 Financial Crisis? Options: The self-correcting nature of the markets, Years of deregulation in the financial industry, The ability of financial institutions to effectively police themselves, All of the above

Back

Years of deregulation in the financial industry

Front

What did the investors in the U.S. and abroad start throwing their money at in the 2000s?

Back

U.S. housing market

Front

What did the credit ratings agencies give to a lot of mortgage backed-securities, indicating they were safe investments?

Back

AAA Ratings

Front

What did the big financial institutions stop buying in 2007, leading to the 2008 Financial Crisis?

Back

Sub-prime mortgages

Front

What did the U.S. government pass in January 2009 to pump over $800 billion into the economy?

Back

Stimulus package