All of the Following Contributed to the Banking Crisis of 2008

question 69

Multiple Choice

All of the following contributed to the banking crisis of 2008 EXCEPT:

• A) The Federal Reserve Bank had kept interest rates at unprecedentedly low levels.
• B) Banks and other lending institutions issued "subprime" mortgages.
• C) Wall Street bankers developed complex ways of repackaging and selling "subprime" mortgages to investors.
• D) The Federal Reserve Bank and other regulatory agencies slowed the speculative frenzy.
• E) Public and private policies favored economic speculation and get-rich-quick schemes.

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Definitions:

Tories

Originally a term for a political faction in Great Britain, often associated with conservatism and the defense of the monarchy against reformist pressures.

Whigs

The Whigs were a political faction and then a political party in the parliaments of England, Scotland, Great Britain, Ireland, and the United Kingdom, active between the 17th and 19th centuries, promoting constitutional monarchism and parliamentary power.

Monarch

A sovereign head of state, especially a king, queen, or emperor, who usually inherits their position by birth.

Parliament

A form of government in which the supreme power is vested in an assembly of elected representatives who are responsible for making laws, often featuring two houses (bicameral) or one house (unicameral).