The Recession of 2007 - 2009 Moved Through Three Stages

question 20

Multiple Choice

The recession of 2007 - 2009 moved through three stages in the following order:

• A)1. The failure of specific mortgage-backed securities, 2. the crisis spread to the very foundations of the organizations at the core of the global financial system, the commercial and investment banks on all continents and 3. led to a credit-induced global recession of potential depression-like depths.
• B)1. The failure of specific mortgage-backed securities, 2 a credit-induced global recession of potential depression-like depths, and 3. the crisis spread to the very foundations of the organizations at the core of the global financial system, the commercial and investment banks on all continents.
• C)1. The crisis started with the very foundations of the organizations at the core of the global financial system, the commercial and investment banks on all continents, 2. spread to the failure of specific mortgage-backed securities, and 3. caused a credit-induced global recession of potential depression-like depths.
• D)1. A credit-induced global recession of potential depression-like depths caused 2. failure among the very foundations of the organizations at the core of the global financial system, the commercial and investment banks on all continent and finally, 3. the failure of specific mortgage-backed securities.

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Definitions:

Utility

The want-satisfying power of a good or service; the satisfaction or pleasure a consumer obtains from the consumption of a good or service (or from the consumption of a collection of goods and services).

Costly Temptations

Unnecessary expenses or indulgences that can detract from long-term financial goals and stability.

Altruistic Behaviors

Acts motivated by the intention to help or benefit another individual or group of individuals without expectation of benefit for oneself.

Impulse Buying

The act of purchasing items on the spur of the moment without premeditation, often triggered by emotions or external stimuli.