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