Lu Nguyen My Tra-31221026351

Reading:
1. Lenders granted mortgages to “subprime” borrowers.
2. The mortgage lenders sold mortgage-backed securities to financial institutions.
3. American house prices fell and many borrows stopped repaying.
4. The value of MBSs fell to almost zero and had many banks lost billions of dollars.
5. Some went bankrupt, and others had to be rescued by governments.
6. There was a credit crisis as there was little capital left for lending and borrowing.
Listening:
1. Social collateral replaces normal financial collateral in microfinance.
2. They create a group of people and within the group people help each other to repay the
loan but it’s usually a very small amount of money.
3. Because there are a large number of people with a very small amount of money, it
actually creates a very nice porfolio in which risk can be diversified.
4. Because the poor people are actually repaying the loans.
5. Bangladesh and part of India, Latin America and Africa.