AIG bailout doesn't mean end to financial crisis

The US government's nationalization of AIG followed recent bailouts of other financial giants, aiming to prevent a global financial crisis. The collapse of AIG would have had severe repercussions, affecting banks, insurance companies, and millions of clients worldwide. The crisis impacts consumers more than businesses, with recovery expected by 2009 in the US and 2010 in the Eurozone. Market stability remains uncertain as major companies like HBOS seek buyers, raising concerns about future financial instability.

What was the primary action taken by the US government to address the financial crisis?

• Bailout of Lehman Brothers

• Nationalization of AIG

• Increase in interest rates

• Reduction of taxes

How did the global financial markets react to the $85 billion rescue plan?

• They showed no change

• They collapsed completely

• They fluctuated wildly

• They stabilized immediately

What was a major concern if AIG had collapsed?

• Loss of government jobs

• Impact on 74 million clients worldwide

• Rise in housing prices

• Increase in oil prices

When is the Eurozone expected to recover from the financial crisis?

• By the end of 2008

• By the end of 2009

• By 2011

• By 2010

What challenge is Britain's largest home loan provider, HBOS, facing?

• Reducing interest rates

• Expanding into new markets

• Looking for a possible buyer

• Finding a new CEO