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Financial Crisis Case Review
Financial Crisis Case Review
15 terms
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StudBud Administration
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45 plays
Review of a case study about the 2008 financial crisis
Flashcards
15 cards
F
Practice quiz
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Host live
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Questions
15
Answers
1
True/False: A driving factor in the crisis was Wall Street investors underpricing risk
True
False
2
Subprime loans are....
low risk with low interest rates
high risk with high interest rates
high risk with low interest rates
low risk with high interest rates
3
Who is to blame for the financial crisis?
All of the above
Investors
The government
Banks
4
True/False: moral hazard is when person/entity refuses to engage in risk taking behavior
True
False
5
Which firm's shares dropped from $38 to $1 in 10 months?
Wachovia
Countrywide
Bank of America
Fannie Mae
6
Stakeholders in this case include
All of the above
The U.S. government
Bank executives
Homeowners
7
How was the economy affected after the crisis?
Stock devalued, jobs created, housing market crashed
Stock devalued, jobs lost, housing market crashed
Stock devalued, jobs created, housing market boomed
Stock value increased, jobs lost, housing market crashed
8
All of the following are key issues in this case EXCEPT
Organizational fraud
Government failed to monitor and regulate
Mismanagement of resources
Taxpayers failed to support banks
9
All of the following were banks mentioned in the
textbook's
financial crisis case study EXCEPT
Freddie Mac
Northern Rock
Bank of America
Wachovia
10
Which country was affected by the housing market?
China
Iceland
United States
All countries
11
How has the U.S. changed since the financial crisis?
Banks incorporated CSR
Nothing has changed
Big banks were broken up
The government is monitoring risk
12
How many banks failed from 2008 to 2012?
378
10
145
465
13
All of the following CSR filters should be implemented for the
government
EXCEPT
Policies
Reporting structure
Water
Monitoring & follow up
14
All of the following CSR filters should be implemented for
banks
EXCEPT
Transportation
Policies
Risk assessment
Stock price growth/decline
15
True/False: the stock market is an example of an efficient market
True
False
