All of the Following Contributed to the Financial Crisis of 2007-2010

question 67

Multiple Choice

All of the following contributed to the financial crisis of 2007-2010 EXCEPT:

• A)the Gulf War
• B)the securitization of mortgage loans
• C)very low interest rates
• D)foreign investment in the bond market

---

Definitions:

Prime Costs

The direct costs of manufacturing, including direct labor and materials.

Direct Labour

The work done by employees directly involved in producing a product or delivering a service, often considered a variable cost.

Direct Materials

Direct materials are the raw materials that are directly traceable and allocable to a finished product in the manufacturing process, directly impacting the cost of goods sold.

Production Costs

The total expense incurred in the manufacture of a product, including labor, materials, and overhead.