In a Peabody Award winning program, NPR correspondents argued that a "Giant Pool of Money" (represented by $70 trillion in worldwide fixed income investments) sought higher yields than those offered by U.S. Treasury bonds early in the decade. This pool of money had roughly doubled in size from 2000 to 2007, yet the supply of relatively safe, income generating investments had not grown as fast. Investment banks on Wall Street answered this demand with products such as the mortgage-backed security and the collateralized debt obligation that were assigned safe ratings by the credit rating agencies. COUNT 5
QSN1 What is one investment assigned safe ratings by the credit rating agencies? ANS1 collateralized debt obligation QSN2 How much was invested worldwide in fixed income investments? ANS2 $70 trillion QSN3 How much did the pool of money invested worldwide in fixed income investments grow in size from 2000 to 2007? ANS3 roughly doubled in size QSN4 What is an example of a product Wall Street invented to answer the demand for income generating investments? ANS4 mortgage-backed security QSN5 In the 2000s, investors were seeking higher yields than those offered by this investment? ANS5 U.S. Treasury bonds