The 2008 Financial Crisis: Crash Course Economics #12

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

• The 2008 Financial Crisis

• The U.S. Government Response

• The Great Depression

• Global Economic Meltdown

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

• Stimulus Package

• Troubled Assets Relief Program

• Dodd-Frank

• TARP

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

• Make emergency loans to banks

• Enact financial reform

• Buy mortgage backed-securities

• Provide stimulus packages

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

• Encourage predatory lending

• Reduce taxes for large banks

• Deregulate the financial industry

• Increase transparency and prevent banks from taking on too much risk

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

• Moral Hazard

• Perverse Incentive

• Too Big to Fail

• Credit Default Swap

What did the bi-partisan, financial crisis inquiry commission report blame for the 2008 Financial Crisis?

• 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

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

• Collateralized debt obligations

• Treasury Bonds

• U.S. housing market

• Mortgage backed-securities

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

• A Ratings

• C Ratings

• BBB Ratings

• AAA Ratings

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

• Credit default swaps

• Collateralized debt obligations

• Mortgage backed-securities

• Sub-prime mortgages

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

• Stimulus package

• TARP

• Dodd-Frank law

• Consumer protection bureau