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:

Corporate Treasurer

An executive responsible for overseeing the company's capital structure, managing financing activities, investment, and risks, ensuring the company's financial health and liquidity.

Vice President

A senior management position in a company or organization, reporting directly to the President or CEO, responsible for a specific division or function.

Primary Market Transaction

The initial issuance and sale of securities directly from the issuer to investors, distinguishing from secondary market transactions where securities are bought and sold among investors.

IPO

Initial Public Offering, the process by which a private company becomes publicly traded by offering its shares for sale to the general public for the first time.