A Fundamental Problem with Goldman Sachs' GSAMP Trust Was That

question 8

Multiple Choice

A fundamental problem with Goldman Sachs' GSAMP Trust was that:

• A)Loans were given to people with poor credit histories
• B)Homeowners' equity in the securitized mortgages was less than 1 percent on average
• C)Loans were given to people with no income
• D)58 percent of the securitized loans had little or no documentation
• E)All of the above

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Definitions:

Maladaptive Response

A reaction or behavior that is counterproductive to an individual's wellbeing or survival.

Fitness Gains

An increase in an organism's genetic contribution to the next generation, often through survival and reproductive success.

Deceitful Signal

A type of communication in the animal kingdom where an organism sends a misleading signal to benefit itself at the expense of another.

Honest Signaling

A concept in evolutionary biology where signals, often used in mate selection, reliably indicate the fitness or quality of the signaler.