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
Now do this
Get set, ready ... click! Here are our research questions for this week. You can get the information from the internet:
The current crisis is not only financial. Find out what other areas are affected.
Finance people use technical words and charts and graphs in their articles.
Try to find out the meanings of the following words or phrases:
snowball effect
contagion
turmoil
tumble
Read financial articles and write down the words you do not understand.