Securities Backed by _______ Layed an Important Role in the Financial

question 21

Multiple Choice

Securities backed by _______ layed an important role in the financial crisis of 2007- 2009?

• A)asset backed securities.
• B)bonds.
• C)sub-prime mortgages.
• D)small business loans

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Definitions:

Accord and Satisfaction

A legal contract wherein a dispute is settled by the parties involved agreeing to provide and accept something different than originally owed.

Doctrine of Promissory Estoppel

A legal principle preventing a party from withdrawing a promise made when the other party has reasonably relied on that promise to their detriment.

Preexisting Duty Rule

A legal principle stating that an existing obligation in a contract cannot serve as consideration for a new contract or for modifying the existing contract.

Unforeseen Circumstances

Events or situations that could not have been predicted or expected and may affect the ability to fulfill obligations.