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:

Horace Mann

Horace Mann was an American educational reformer and politician known for his advocacy for public education, the establishment of teacher training programs, and his role in the creation of the first public schools in the United States.

Universal Education

The right or opportunity for all people, regardless of background, to receive an education at all levels.

Talented Tenth

A term coined to describe the top ten percent of African Americans in terms of intelligence and leadership, believed to have the potential to lead the race towards social and economic equality.