Worksheets2008 Financial crisis
Total questions: 8
Worksheet time: 4mins
What was the primary cause of the 2008 financial crisis?
Overregulation of banks
Excessive risk-taking in the financial sector
Rising interest rates on government bonds
A sudden drop in oil prices
What did Credit Rating Agencies do that contributed to the financial crisis?
They downgraded risky investments too early
They refused to rate mortgage-backed securities
They gave high ratings (AAA) to risky financial products
They stopped issuing ratings after 2006
What are "subprime mortgages"?
High-quality loans given to low-risk borrowers
Risky home loans given to borrowers with poor credit history
Loans issued by government agencies
Short-term loans with high interest rates
Which financial product played a major role in the crisis by bundling risky mortgages into investments?
Credit Default Swaps (CDS)
Collateralized Debt Obligations (CDOs)
Hedge Funds
Mutual Funds
What major investment bank collapsed in September 2008, marking a turning point in the crisis?
Lehman Brothers
Goldman Sachs
JPMorgan Chase
Morgan Stanley
What was the U.S. government’s bailout program called?
Troubled Asset Relief Program (TARP)
Federal Reserve Liquidity Fund
Emergency Investment Fund
National Bank Recovery Plan
Who was the Chairman of the Federal Reserve during the financial crisis?
Alan Greenspan
Ben Bernanke
Janet Yellen
Paul Volcker
What role did derivatives, such as Credit Default Swaps (CDS), play in the crisis?
They spread financial risk widely across the economy
They helped stabilize the housing market
They prevented banks from failing
They were outlawed before the crisis hit
