All of the Following Contributed to the Banking Crisis of 2008

question 69

Multiple Choice

All of the following contributed to the banking crisis of 2008 EXCEPT:

• A) The Federal Reserve Bank had kept interest rates at unprecedentedly low levels.
• B) Banks and other lending institutions issued "subprime" mortgages.
• C) Wall Street bankers developed complex ways of repackaging and selling "subprime" mortgages to investors.
• D) The Federal Reserve Bank and other regulatory agencies slowed the speculative frenzy.
• E) Public and private policies favored economic speculation and get-rich-quick schemes.

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Definitions:

Litigation

The process of taking legal action or resolving disputes in court.

Fixed Asset

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming business cycle.

Damage Repair

The process of fixing or restoring property or items that have been harmed or degraded.

Depreciated

The reduction in the value of an asset over time due to wear and tear or obsolescence.