The 2008 Credit Crunch Occurred When Banks Reduced Lending in Response

question 45

Multiple Choice

The 2008 credit crunch occurred when banks reduced lending in response to

• A)​the loss of asset value for mortgage backed securities and mortgage loans.
• B)​having too little capital to satisfy capital requirements.
• C)​an excess of bank capital.
• D)​an increase in the required reserve ratio.

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Definitions:

Organizational Politics

The use of power, negotiation, and alliances within an organization to achieve personal or organizational goals.

Self-Interests

The consideration of one's personal advantage or profit, often without regard for others.

Vision

A clear, inspiring, long-term desired change resulting from an organization or individual's effort.

Hard Decisions

Difficult choices that require deliberation due to the significant consequences or trade-offs involved.