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:

Lichens

Symbiotic associations between a fungus and a photosynthetic partner (usually an algae or cyanobacteria), living together on surfaces like rocks or trees.

Algae

A diverse group of photosynthetic organisms that are not necessarily closely related, ranging from unicellular microalgae to large multicellular forms, inhabiting both freshwater and marine environments.

Chytrid Fungi

A group of primitive pathogenic fungi that can infect amphibian skins, significantly contributing to global declines in amphibian populations.

Chytridomycota

A phylum of fungi characterized by producing spores with flagella; they are mostly aquatic.