The Big Short - Warm Up Quiz

Customers rush to a bank to take out their money as quickly as possible in fear of losing it

A bond or security backed by a pool or bundle of mortgages.

money you borrow from a bank to buy property (usually over a ±35 year period)

Bank or lender legally takes back property because the person who took out the loan cannot pay

long-term downturn in economic activity in one or more economies is called a

To charge money to an account which takes money directly from your bank is called

A company that evaluates the quality of an investment, from an amazing AAA to a low quality B.

An asset is

A loan that uses property such as a house as collateral. Not paying loan = losing collateral

Sudden, dramatic drop in price of many different types of stocks. Double digit percentage loss

This means that your belongings can be changed into cash (sold); available cash or able to get$

Long-term trading activity at prices very much above the "real" value; inflated speculation

A businessman swindled investors out of millions of pounds means ....

The US government body that is supposed to regulate investments like mortgage-backed bonds

The company went bust means....

The title of the movie, “The Big Short” refers to

A portion of a company that the public can buy

Trust in a person's ability to pay; estimate of their ability to repay.

a tradable financial asset is called a

trading strategy that seeks to capitalize on an anticipated decline in the price of a security.

The big short means .....

Goldman Sachs and JP Morgan are examples of

risky business deal designed for quick or huge profit; large risk investment

is any person, company or other institution that owns at least one share of a company’s stock

Amount of $$ a bank must keep as "vault cash" or as a deposit with a Federal Reserve Bank

someone who doesn't follow the crowd (not a sheep)

The banks make 2% commission each time they...

Overdraft penalty means

What does the SEC stand for?

type of asset-backed securities and credits, including mortgage-backed securities

Central banking system of the US, created to keep financial system stable, sets interest rates

the value of the shares issued by a company

cover up the origin of illegally acquired money by transferring it through banks

a thing you "buy" in order to short the market

“Short selling” a financial asset means that

CDO stands for

if I ..... the market, I buy bonds/stocks of that market.

Bankrupt means

if something is rock solid, it is very...

a type of security that signifies ownership in a corporation; a share of a company

Riskier lending and loans because of the credit history of the borrowers (poor credit score)