Which of the Following Was Not a Factor That Contributed

question 59

Multiple Choice

Which of the following was not a factor that contributed to the subprime mortgage crisis?

• A) f security derived from FDIC insurance on mortgage loans
• B) lower down payments
• C) households devoting 25% or more of their income to mortgage payments
• D) lending to households with adverse credit ratings

Understand the principles of efficient market hypothesis (EMH) and its critics.

Analyze the impact of gambler’s fallacy and law of small numbers in financial decision-making.

Interpret the role of frame dependence in influencing financial decisions and perceptions.

Comprehend the behavioral characteristics leading to market anomalies such as bubbles and crashes.

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Definitions:

Recall

The act of retrieving information or events from the past in one's memory.

Nonsense Syllables

Random strings of letters without inherent meaning, often used in memory and learning experiments to study the processes of human cognition.

Ebbinghaus

Refers to Hermann Ebbinghaus, a psychologist known for his research on memory, specifically the forgetting curve and the spacing effect.

Multiple-Choice

A type of question or survey format that presents respondents with several answers and requires them to select the correct one.