Tracing the Causes of the Recent Banking Crisis, Which of the Following

question 182

Multiple Choice

Tracing the causes of the recent banking crisis, which of the following organizations' activities is not in the news as having been a contributor to the crisis?

• A) The Federal Reserve suppressed interest rates which made it easier for prospective home owners and others to get loans.
• B) Congress promoted questionable loans.
• C) Banks dealt in MBSs (Mortgage Backed Securities) that were not as safe as assumed.
• D) Pension funds invested in risky investments.

---

Definitions:

Conception

The action of conceiving a child or of one being conceived, or the forming of an idea or notion.

Infancy

The period in human development from birth to the age of 2, characterized by rapid growth and significant cognitive, emotional, and physical changes.

Middle Childhood

A developmental stage ranging from approximately 6 to 12 years of age, characterized by significant growth in cognitive, physical, and social capabilities.

Early Childhood

The period of human development from birth to about 8 years of age, encompassing significant milestones in physical, social, emotional, and cognitive growth.