quiz time

Choose the correct definitions for the following terms

1 mortgage

2 sub-prime

3 bubble

4 Fed

5 leverage

6 liquidity

a) a situation when prices of stocks, houses etc are unrealistically high

b) short name for the US central bank - the Federal Reserve

c) to use borrowed money in order to invest and make more money

d) a loan to buy a house - if the borrower cannot pay back, the bank has a right to seize the house

e) money available whenever you need it

f) variable mortgages

Answers

1. d, 2. f, 3. a, 4. b, 5. c, 6. e

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