Gretchen Morgenson and Joshua Rosner Argued That the Main Reason

question 58

Multiple Choice

Gretchen Morgenson and Joshua Rosner argued that the main reason for the most recent financial crisis was that

• A)the Federal Reserve had too much control over the financial system.
• B)no one could see the risk in the financial market at that time.
• C)there were too many banks and other financial institutions in the United States.
• D)there were too many government regulators.
• E)government regulators were being "captured" by banks.

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Definitions:

Portfolio Management

The act of making investment decisions to meet specified investment goals for the benefit of the investors.

Active Asset Allocation

Active Asset Allocation is a strategy in which an investor adjusts the proportions of various assets in a portfolio based on current market conditions and forecasts to try to maximize returns.

Market Conditions

The environmental and economic factors that affect the supply and demand, prices, and the success of businesses within a particular market.

Portfolio Proportions

The percentage composition of different assets within an investment portfolio.