In the Early 2000s, Banks Took the Mortgages That They

question 30

True/False

In the early 2000s, banks took the mortgages that they owned, created mortgage-backed securities out of them, and sold them as safe investments.

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Definitions:

Imaginary Audience

A psychological and social phenomenon where an individual imagines and believes that multitudes of people are enthusiastically listening to or watching them.

Personal Fable

A cognitive distortion found in adolescence, where the individual believes themselves to be unique and destined for greatness.

Metacognition

The awareness and understanding of one's own thought processes, often involving the monitoring and control of cognitive strategies.

Hypothetical-Deductive Reasoning

A cognitive process involving the formulation of hypotheses and deducing their logical or empirical consequences.