Recent Problems Facing the U

question 10

Multiple Choice

Recent problems facing the U.S. financial system were the result of all but which one of the following?

• A) A huge increase in the amount of mortgage-backed securities being bundled up and sold in the markets
• B) A huge drop in the value of mortgage-backed securities
• C) An increase in the use of commercial paper for short-term financing
• D) The government permitting commercial and investment banks to merge

---

Definitions:

Writing Requirement

A legal standard mandating that certain contracts or agreements must be in written form to be considered valid, often to ensure clarity and evidence of the terms.

Merchants

Business people or companies engaged in retail or wholesale trade of goods or services.

Statute of Frauds

A legal principle requiring certain contracts to be in writing and signed by the parties involved, ensuring enforceability.

Unconscionable

Refers to actions or terms in contracts that are so unfair or oppressive to one party that no reasonable or informed person would agree to them.