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

question 18

Multiple Choice

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

• A)Financial regulations were too "light" prior to the crisis.
• B)Excessive complexity made the financial system more fragile and dangerous.
• C)Both monetary policy and fiscal policy are needed in order for the economy to recover.
• D)Regulatory failures were based primarily on poor job performance.

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Definitions:

Consolidation

The process of combining financial statements of a parent company with its subsidiaries to present as if the group of companies is a single economic entity.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for a long-term asset since its acquisition.

Consolidation Purposes

The process of combining the financial statements of a parent company and its subsidiaries into one comprehensive financial statement package, to present as if the group were a single entity.

Excess Amortizations

The amount by which amortization expense exceeds the amount necessary to amortize the cost of a tangible or intangible asset over its useful life.