Which of These Did NOT Contribute Significantly to the Financial

question 175

Multiple Choice

Which of these did NOT contribute significantly to the financial crisis of 2008?

• A) bond rating agencies assigning very low ratings to mortgage-backed securities
• B) weak enforcement of lending standards that resulted in many risky loans
• C) a large rise in home foreclosures
• D) excessive leveraging and issuance of credit default swaps

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Definitions:

Next Period

A future accounting period where transactions will be recorded and reported.

Freight-in

The cost associated with transporting goods or inventory to a company, which is often included as part of the inventory cost.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including both raw materials and labor costs.

Operating Expenses

Expenses incurred during the normal operation of a business, not including the cost of goods sold.