The Recession of 2008-2009 Was Preceded by

question 50

Multiple Choice

The recession of 2008-2009 was preceded by

• A)a sharp decline in housing prices.
• B)large losses among financial institutions that owned mortgage-backed securities.
• C)rises in mortgage defaults and home foreclosures.
• D)all of the above

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Definitions:

Diluted Earnings

A calculation of a company's earnings that takes into account all potential shares that could be claimed or converted into common stock, impacting the earnings per share metric.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, assigning weights to some of the numbers more than others.

Stock Options

Financial instruments granting the holder the right, but not the obligation, to buy or sell a stock at a specified price within a certain period.

GAAP

Generally Accepted Accounting Principles, which are standards and conventions for financial reporting in the United States.