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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