Which of the Following Contributed Most to the Economic Crisis

question 89

Multiple Choice

Which of the following contributed most to the economic crisis that began in 2007?

• A) Deregulated commercial banks were allowed to take more risks than investment banks.
• B) Deregulated commercial banks were allowed to trade securities and take more risks than they had been in the past.
• C) Deregulated investment banks were allowed to trade securities and take more risks than they had been in the past.
• D) Deregulated investment banks were allowed to take more risks than commercial banks.

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Definitions:

Voting Shares

Shares of a company that provide the shareholder the right to vote on corporate matters, such as the election of the board of directors.

Open Market

A market where buying and selling of goods and services take place with minimal restrictions or regulations, often referring to the stock market.

Ownership Percentage

The fraction or percentage of a company that is owned by a shareholder or group of shareholders.

Voting Shares

Shares that give the shareholder the right to vote on corporate matters.