With Respect to the Financial Crisis of 2007-2009, Some Economists

question 144

Multiple Choice

With respect to the financial crisis of 2007-2009, some economists argue that financial service firms should have done a better job of assessing the risk involved in investing in mortgage-backed securities.Better governance in this context refers to which of the following?

• A)improvements in aligning the actions of top managers with the preferences of shareholders
• B)improving the assessment of investments.
• C)improving the monitoring of investments.
• D)all of the above

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Definitions:

Organic Product

A molecule predominantly consisting of carbon and hydrogen that is the result of organic reactions.

Reaction

A method where one or more materials, known as reactants, undergo a transformation to produce one or more distinct materials, referred to as products.

Organic Product

A compound resulting from an organic reaction, often comprising carbon-based structures.

Reaction

A process where substances, known as reactants, are converted into different substances, referred to as products, through chemical change.