Which of the Following Was Not a Lesson from the 2007-2009

question 33

Multiple Choice

Which of the following was not a lesson from the 2007-2009 financial crisis?

• A)Regulatory failures were the result of weaknesses across the regulatory structure.
• B)The financial system operated with too much leverage.
• C)The business cycle no longer applies to economic analysis.
• D)Monetary policy alone may not be sufficient to stabilize aggregate demand.

---

Definitions:

Statement of Cash Flows

A financial report that depicts how variations in income and balance sheet accounts affect the cash and cash equivalents, organized into the segments of operating activities, investing activities, and financing activities.

Operating Activities

Activities that relate to the primary operations of a company, such as sales, provision of services, and production.

Indirect Method

This approach is used in cash flow statements to report net income and adjust it for changes in assets and liabilities that affect cash but are not cash transactions themselves.

Depreciated Equipment

Assets that have undergone depreciation to reflect the reduction in value due to wear and tear, age, or obsolescence.