back RULES  Put away all note cards and study aids. You may keep a copy of Visual 1, “ Terms of Modern Financial Markets.”  Each site will be a team. We will keep score at WSU for all teams. (Please select a person at your site to keep us honest.)  There are 2 “Daily Doubles” in the game. The groups that choose one of these can bet up to as many points as they have at the time, but not less than the value of the question on the board.

back Rules (cont.)  The answer must be in the form of a question.  A team has 10 seconds to confer and pick a category. The moderator will automatically start with the lowest point value.  If the answer is correct, the team receives the points. If the answer is incorrect, the team loses that number of points.

back Rules (cont.)  If the first team answers incorrectly, the moderator re-reads the question and other teams can buzz in and have a chance to answer correctly. This will continue until the question has been answered correctly.  The game ends when all the questions have been asked or if the time is 11:40 am.  The highest scoring team wins.

Houston, We’ve Got A Problem Institutionalize This Bank On It Financial Potpourri Not Your Grandma’s Finance

back A bank will use this legal procedure to force payment on your house (or take ownership of it) if you stop paying your mortgage.  What is a foreclosure? Houston, We Have A Problem 100

back This occurs when banks reduce their lending to other banks and customers because they are worried about being repaid.  What is a credit crunch? Houston, We Have A Problem - 200

back If a person or company fails to meet the terms of their loan agreement, they are said to be in __________.  What is default? Houston, We Have A Problem - 300

back Not the board game; rather, the uncertainty of the return on an asset.  What is a risk? Houston, We Have A Problem -400

back A government take-over of a business. Hint: Fannie Mae and Freddie Mac  What is nationalization? Houston, We Have A Problem - 500

back Federal-government-created, now Federal-government-owned, institutions that buy mortgages from banks.  What are Fannie Mae and Freddie Mac? Institutionalize This - 100

back The central bank of the United States. It is responsible for setting the nation’s monetary policy.  What is Federal Reserve System? Institutionalize This - 200

back It protects your bank deposit up to $250,000.  What is the FDIC? Institutionalize This - 300

back A group of risky investments typically purchased by wealthy investors or institutions.  What is a hedge fund? Institutionalize This

back Investments in private companies by groups with plans to take over ownership.  What is a private equity fund? Institutionalize This - 500

back The type of institution that offers services such as checking accounts, savings accounts and loans to individuals and businesses.  What is a commercial bank? Bank On It - 100

back A loan that banks make to individuals buying a home.  What is mortgage? Bank On It - 200

back This occurs when many depositors in a bank lose confidence and try to withdraw their money all at once.Hint: This happened in the movie “It’s a Wonderful Life”  What is a bank run? Bank On It - 300

back The institution in a nation that performs functions like issuing currency and influencing the supply of credit in the economy.  What is a central bank? Bank On It -400

back DAILY DOUBL: A bank that offers financial services such as trading securities, raising capital, and managing corporate mergers and acquisitions..  What is an investment bank? Bank On It- 500

back A loan to a corporation or government in return for repayment with interest.  What is a bond? Financial Potpourri - 100

back A share of ownership in a corporation.  What is a common stock? Financial Potpourri -200

back How easily something is can be turned into money.  What is liquidity? Financial Potpourri - 300

back Rules or las designed to control or govern the financial system.  What is regulation? Financial Potpourri - 400

back The process of converting an illiquid asset (or group of illiquid assets) into an investment that can be sold or traded.  What is securitization? Financial Potpourri - 500

back An agreement to buy or sell a commodity or security later at a price determined today.  What is a futures contract? Not Your Grandma’s Finance- 100

back The rights to buy or sell an investment during a specific period of time.  What are options? Not Your Grandma’s Finance - 200

back Similar to home or car insurance but for your investments.  What is a credit default swap? Not Your Grandma’s Finance - 300

back DAILY DOUBLE: Wall Street firms bought lots of these from 2001 to They are created by bundling home loans and repackaging them as this investment.  What are mortgage-backed securities? Not Your Grandma’s Finance – 400

back Home loans offered to people with credit problems, often with higher interest rates than typical home loans.  What are subprime mortgages? Not Your Grandma’s Finance - 500