The 2007 Recession Was Triggered Primarily by

question 37

Multiple Choice

The 2007 recession was triggered primarily by

• A) a steep drop in the stock market that caused the savings of many ordinary Americans to evaporate.
• B) bad loans made by the government and private banks to large but inefficient companies.
• C) an unwillingness of American consumers to borrow money.
• D) poor government regulation of a banking industry that made mortgage loans to people who couldn't repay them.
• E) problems with major European economies that lessened the ability of American companies to export goods to Europe.

Differentiate between implied and express warranties and their implications on sales contracts.

Identify the role and requirements of the UCC in governing sales contracts and warranties.

Analyze the statutory limitations for bringing a lawsuit under a breach of contract governed by the UCC.

Evaluate the conditions under which a warranty claim can be made or waived.

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Definitions:

Market Risk

The risk of losses in investments caused by factors that affect the overall performance of the financial markets.

Characteristic Line

A line used in finance to illustrate the rate of return of an asset as a function of the return of the market as a whole.

Systematic Risk

The risk inherent to the entire market or market segment, not diversifiable through portfolio diversification.

Total Risk

The overall risk associated with an investment, encompassing both systematic and unsystematic risks.