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.