Which of the Following Was a Contributing Factor to the Rising

question 135

Multiple Choice

Which of the following was a contributing factor to the rising default and foreclosure rates beginning in the latter half of 2006?

• A) the increasing share of 30-year, fixed rate loans as a share of outstanding mortgages
• B) the rigid standards of rating agencies, such as Moody's and Standard and Poors, which limited the development of mortgage-backed securities
• C) the price-stability policies of the Federal Reserve during 1998-2008
• D) the erosion of lending standards during the preceding decade

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Definitions:

Western

Pertaining to or characteristic of the cultures, institutions, and thought originating from or associated with Europe and North America.

Anthony Giddens

A British sociologist who developed the theory of structuration and wrote extensively on contemporary society, modernity, and globalization.

Samuel Huntington

An American political scientist known for his "Clash of Civilizations" theory, which posits cultural and religious identities as the primary sources of global conflict.

Cultural Identity

represents the identity or feeling of belonging to a group based on shared cultural traits, heritage, language, religion, and traditions.