Which of the Following Was an Underlying Cause of the Economic

question 503

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

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Definitions:

Leadership Traits

Inherent attributes and characteristics that are believed to make an individual predisposed to be an effective leader.

Self-Confidence

The belief in one's abilities, qualities, and judgment.

Club Members

Individuals who have officially joined or are affiliated with a specific club or organization, often sharing common interests or goals.

Major Leadership Traits

Essential personal qualities or characteristics associated with effective leaders, such as intelligence, determination, integrity, and sociability.