Which of These Was NOT a Factor Leading to the 2007-2009

question 75

Multiple Choice

Which of these was NOT a factor leading to the 2007-2009 financial crisis?

• A) low interest rates encouraging a housing boom
• B) underestimation of the level of risk inherent in the mortgage market
• C) lack of faith in the ability of the U.S. Treasury to pay on government bonds
• D) investors buying trillions of dollars of assets that depended on rising housing values

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Definitions:

Aristotle

An ancient Greek philosopher and polymath whose works spanning politics, metaphysics, ethics, and logic are foundational to Western philosophy.

Scientific Reasoning

The methodological approach to problem-solving and understanding natural phenomena through hypothesis formation, experimental design, data analysis, and logical argumentation.

Hypothesis Testing

A statistical method used to determine if there is enough evidence in a sample of data to infer that a certain condition is true for the entire population.

Problem Identification

A rephrased definition: Initiating the problem-solving process by clearly recognizing and outlining an issue that needs to be dealt with.