33. A contract that acts like an insurance policy against bond defaults (and other credit events) is called a(n):

collateralized debt obligation.

mortgage-backed security

credit default swap

plain vanilla interest rate swap

34. The way the Federal Reserve and Congress ultimately bailed out the banking system in the 2007-2008 financial crisis was to:

buy the "toxic" assets from the banks.

form a company to sell the toxic assets.

make an equity investment in a number of large banks.

because of moral hazard, the Fed and Congress did not bail out the banks.

35. According to the "green" video on the financial crisis, the financial crisis wasprimarily driven bypeople who wanted bigger houses than they could afford.

True

False

36. When evaluating stock performance, ______ measures variability that is systematically related to market returns; ________ measures total variability of a stock's returns.

beta; standard deviation

standard deviation; beta

intercept;beta

beta; error term