Watch the video and answer the following questions
- What is a subprime mortgage?
- How did banks market mortgages?
- In 2004, the SEC eased leverage requirements for investment banks. What does this mean? (Remember Chapter 17 ratios?)
- Describe how the Federal Reserve can use its authority to attempt to stimulate the economy.
- One of the major problems that led to the financial crisis was the housing bubble. What is meant by the term “housing bubble”?
- Name and explain the four reasons the Congressional committee identified for the recent financial crisis.
50 word minimum for each question
Clarity: concepts are clear and well-articulated
Critical thinking skills: Concise analysis. Considered the issues from all perspectives
Key Concepts: demonstrates understanding of all pertinent concepts
Format: Correct spelling, grammar. Readability.