The Global Financial Crisis Quiz

What was the primary cause of the Global Financial Crisis?

• A major cyber attack on financial institutions

• A sudden increase in oil prices

• The collapse of the U.S. housing market

• A global pandemic

Which financial product was most associated with the crisis?

• Corporate stocks

• Government bonds

• Cryptocurrencies

• Mortgage-backed securities

What was the name of the U.S. government program that allocated $700 billion for stabilization?

• Economic Recovery Act

• Banking Support Fund

• Troubled Asset Relief Program (TARP)

• Financial Stability Initiative

Which major financial institution's collapse marked a significant point in the crisis?

• Lehman Brothers

• Goldman Sachs

• Morgan Stanley

• Citigroup

What term did Ben Bernanke use to describe the period of economic stability before the crisis?

• The Prosperity Era

• The Financial Calm

• The Economic Boom

• The Great Moderation

Which U.S. government agencies were involved in encouraging subprime mortgages?

• Department of Housing and Urban Development and IRS

• Securities and Exchange Commission and FDIC

• Federal Reserve and Treasury Department

• Fannie Mae and Freddie Mac

What was a key policy response by the Federal Reserve to the crisis?

• Lowering interest rates to near zero

• Increasing tariffs on imports

• Raising taxes on corporations

• Implementing strict immigration controls

What was the percentage increase in delinquencies on single-family residential mortgages from 2007 to 2010?

• 100%

• 657%

• 500%

• 250%

What was the impact of the crisis on global GDP growth?

• It increased slightly

• It entered negative territory for the first time since records began

• It doubled

• It remained stable

What was the role of non-bank financial intermediaries (NBFIs) in the crisis?

• They provided insurance for all mortgages

• They offered government-backed loans

• They regulated the banking sector

• They were heavily involved in mortgage derivatives