Causes and Consequences of the 2008 Financial Crisis Quiz

Test your knowledge on the causes, impacts, and players involved in the 2008 financial crisis with this insightful quiz.

#1

Which financial institution collapsed in September 2008, triggering the global financial crisis?

Lehman Brothers
Goldman Sachs
JP Morgan Chase
Morgan Stanley
#2

What was the primary cause of the 2008 financial crisis?

Excessive government regulation
Unsustainable housing bubble
Low inflation rates
Overproduction in the manufacturing sector
#3

Which financial instrument played a significant role in spreading the risk that led to the 2008 financial crisis?

Credit default swaps
Treasury bonds
Stock options
Municipal bonds
#4

What term describes the practice of banks issuing loans to borrowers with poor credit history, contributing to the housing bubble?

Subprime lending
Prime lending
Microfinance
Securitization
#5

Which U.S. government-sponsored enterprise was heavily involved in the subprime mortgage market prior to the 2008 financial crisis?

Fannie Mae
Freddie Mac
Sallie Mae
Ginnie Mae
#6

What term is used to describe the practice of bundling together various types of debt and selling them as securities to investors?

Collateralized debt obligation
Derivative
Hedge fund
Venture capital
#7

Which rating agencies were criticized for assigning overly optimistic ratings to mortgage-backed securities prior to the 2008 financial crisis?

Standard & Poor's
Moody's Investors Service
Fitch Ratings
All of the above
#8

Which of the following was NOT a consequence of the 2008 financial crisis?

Global recession
Bank bailouts
Rapid economic growth
High unemployment rates
#9

Which country experienced a sovereign debt crisis as a result of the 2008 financial crisis?

Greece
Germany
Japan
Canada
#10

What term refers to the situation where a decline in asset values leads to a further decrease in their value, triggering a self-reinforcing cycle?

Liquidity trap
Moral hazard
Feedback loop
Asset bubble
#11

Which major financial institution was acquired by Bank of America during the 2008 financial crisis?

Wells Fargo
Washington Mutual
Countrywide Financial
Citigroup
#12

What was the name of the investment bank that was bailed out by the U.S. government in 2008 and later acquired by JPMorgan Chase?

Lehman Brothers
Bear Stearns
Merrill Lynch
Goldman Sachs
#13

What term is used to describe the situation where financial institutions hold insufficient capital to cover potential losses?

Liquidity risk
Solvency risk
Credit risk
Operational risk

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