The Mortgage-Backed Securities Issued by Investment Banks Caused Many Investment

question 170

Multiple Choice

The mortgage-backed securities issued by investment banks caused many investment banks to fail when

• A) stock prices declined by approximately 40 percent in 2008.
• B) housing prices increased rapidly beginning in 2002.
• C) federal regulators required investment banks to maintain more capital against their residential housing loans than was true for commercial business loans.
• D) the default rates of the mortgages financed by the securities increased sharply.

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