Riddle: Two quarters of shrinking GDP, I mark the fall of the economy. Definition: A period of economic decline, typically measured by two consecutive quarters of negative growth.
Recession
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15
Riddle: Iโm the bank of banks, setting the tone, raising or cutting rates on a loan. Definition: The central banking system of the United States.
Federal Reserve
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15
Riddle: When jobs are gone and paychecks cease, I rise and signal economic disease. Definition: The condition of being jobless and actively seeking work.
Unemployment
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15
Riddle: I turn home loans into Wall Street fareโthen crumble if those loans impair. Definition: Investment backed by bundled home loans.
Mortgage-Backed Security
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monster
Reset all scores!
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gift
Win 10 points!
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fairy
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lifesaver
Give 25 points!
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15
Riddle: When you can't pay the bank what you owe, your house gets takenโoff you go! Definition: Legal process where a lender takes ownership of a property due to missed payments.
Foreclosure
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15
Riddle: I give a grade to financial trustโbut in the crisis, I lost some must. Definition: Company that evaluates the credit risk of debt issuers.
Credit Rating Agency
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15
Riddle: Iโm the cost of borrowing cashโtoo high or low, I cause a clash. Definition: The percentage charged for borrowing money.
Interest Rate
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15
Riddle: My interest starts low but wonโt stay that way, Iโll rise over timeโwhat do you say? Definition: A mortgage with an interest rate that changes periodically.
Adjustable-Rate Mortgage (ARM)
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15
Riddle: Iโm like insuranceโbut kind of shadyโon loans gone bad, I made bankers crazy. Definition: A financial contract that pays out if a borrower defaults on a loan.
Credit Default Swap
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lifesaver
Give 20 points!
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shark
Other team loses 5 points!
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gift
Win 20 points!
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thief
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Riddle: Iโm a loan with a home in towโpay me monthly or face a foe. Definition: A loan used to purchase real estate, repaid over time with interest.
Mortgage
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15
Riddle: When companies sink and canโt stay afloat, Uncle Sam throws them a voteโand a boat. Definition: Government financial support to prevent the failure of large institutions.
Bailout
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trap
No points!
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rocket
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rocket
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thief
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Riddle: I grew with hype, inflated with gleeโthen popped and caused catastrophe. Definition: A rapid increase in home prices followed by a sudden collapse.
Housing Bubble
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15
Riddle: Prices go up and your dollar buys lessโwhen I appear, you feel the stress. Definition: A general rise in prices, reducing purchasing power.