1. The bailout of banks were generally in the form of ________________.
a) Direct Investment in companies by the Fed and/or Treasury
b) Lowering the reserve requirements on banks
c) Tax cuts on corporate income
2. The housing crises resulted in _____________.
a) Many bankers were prosecuted for fraud
b) Bank regulations that split up the largest banks
c) None of these things happened
3. Each dollar in a mortgage could be multiplied approximately how many times through synthetic CDOs?
a) 5
b) 20
c) 100
4. If you buy insurance and the insurance company goes bankrupt (so that you don’t get paid), this is called __________________.
a) Counterparty Risk
b) Credit Default Swap
c) Synthetic Insurance