There is an ongoing debate about whether banking bosses and company CEOs deserve their bonus payments. With the current world situation this debate is even more strongly felt. Let's look back at the banking crisis from 2008 and see if we can work out how to avoid another crisis in the future.
Watch the video to learn useful banking vocabulary.
Now answer the questions below
- Who has been affected by the credit crisis?
Everyone has been affected.
- Why was the interest rate in the USA lowered to 1%?
To keep the economy strong.
- What is leverage?
Leverage is borrowing money to amplify the outcome of a deal.
- What is a CDO?
A collateralised debt obligation.