As the Housing Bubble Began to Collapse, the Wave of Initial

question 97

Multiple Choice

As the housing bubble began to collapse, the wave of initial foreclosures led to:

• A) less government regulation of financial markets.
• B) an increase in stock prices, as investors looked for safer investments.
• C) an increase in interest rates.
• D) a market flooded with homes for sale, further depressing their prices.

---

Definitions:

Cognitive Restructuring

A technique used by cognitive-behavioral therapists to encourage clients to become aware of, and to question, their assumptions, expectations, attributions, and automatic thoughts.

Distorted Thoughts

Thought patterns that are twisted, misleading, or based on false assumptions.

Emotions

Complex psychological states that involve three distinct components: a subjective experience, a physiological response, and a behavioral or expressive response.

Cognitive-Behavioural Therapy

A therapy approach focusing on changing negative thought patterns and behaviors to improve emotional regulation and personal coping strategies.