What Is The Fusion Economy?

Question 1

What happened in the subprime mortgage crisis?

Answer 1

Subprime mortgages are mortgages given to home buyers who normally wouldn’t have been given credit (aka subprime borrowers) at slightly higher than normal rates.

During the first years of the 21st century, many subprime mortgages were repackaged and sold as bonds to investors. When property prices tumbled, many subprime borrowers were unable to refinance their loans and make interest payments in their original loans. The default payments led to a decline in the value of the subprime mortgage securities.
Eventually, banks and FIs that had bought these mortgage backed securities had to write off their debt, leading to a credit crisis that spread around the world as other banks and FIs refuse the provide the cash to keep the worlds companies and FIs running.

Question 2

What is the difference between a budget deficit and a trade deficit?

Answer 2

Budget deficit: When a government overspends (eg. paying out more for guns and butter than it gets from tax revenue)

Trade deficit: When a country “spends” more than it “earns” on the international marketplace ; imports more than exports

Question 3

What are the N11 countries?

Answer 3

Countries singled out for strong economic growth :

Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey, Vietnam