Which of These Was NOT a Factor Leading to the Financial

question 243

Multiple Choice

Which of these was NOT a factor leading to the financial crisis of 2007-2009?

• A) Low interest rates encouraged a housing boom.
• B) Policymakers underestimated the level of risk inherent in the mortgage market.
• C) The public lacked faith in the ability of the U.S. Treasury to pay government bonds.
• D) Investors borrowed heavily to purchase securitized mortgages.

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Definitions:

Epigenetics

The study of heritable changes in gene expression that do not involve changes to the underlying DNA sequence, influenced by environmental factors and lifestyle choices.

Frontal Lobe

The part of the human brain located at the front of each cerebral hemisphere, responsible for executive functions such as decision making, problem solving, control of purposeful behaviors, consciousness, and emotions.

Amygdala

A set of almond-shaped masses of neurons located deep within the brain's medial temporal lobe, involved in processing emotions such as fear, anger, and pleasure.

Hippocampus

a region of the brain that is associated with memory, emotions, and navigation.