Which of the Following Was an Underlying Cause of the Economic

question 102

Multiple Choice

Which of the following was an underlying cause of the economic crisis of 2008?

• A) A failure of government to impose regulations on Fannie Mae, Freddie Mac, and other mortgage lenders.
• B) The imposition of government regulations on Fannie Mae, Freddie Mac, and other lending institutions that eroded the conventional lending standards in place prior to the mid-1990s.
• C) Greedy mortgage lenders who extended risky loans to sub-prime borrowers even though the regulators were trying to limit these loans.
• D) Federal housing regulations that made it difficult for Fannie Mae, Freddie Mac, and other lending institutions to obtain sufficient loanable funds for the finance of housing construction.

Analyze the return on investment (ROI) for specific business scenarios.

Determine net operating income given a set of operational data.

Understand and calculate the margin for investment opportunities.

Comprehend the impact of fixed expenses on profitability.

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Definitions:

Records

A collection of related data items, usually arranged in fields within a database.

Form Design View

A graphical interface in software used for designing the layout of a form, allowing users to specify where data fields and labels appear.

Text Box

A GUI element that allows users to input or display text in a document or application.

Margins

The blank spaces surrounding the content of a page, typically configurable in document creation or publishing software to ensure proper layout.