Why Did Goldman Sachs Have to Pay a Fine of Half

question 7

Multiple Choice

Why did Goldman Sachs have to pay a fine of half a billion dollars in 2010?

• A) It had underwritten most of the subprime mortgages during the real estate boom.
• B) It had failed to document its business structure to the Securities and Exchange Commission.
• C) It had knowingly sold toxic mortgage-based securities and then bet on their failure.
• D) It had illegally financed the presidential campaign of Democratic President Obama.
• E) It had failed to reform its management and business practice in the wake of the mortgage crisis.

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Definitions:

Metronome Sound

The sound produced by a metronome, used to mark time at a selected rate by producing regular ticks.

Pavlov

Pavlov, Ivan Petrovich, was a Russian physiologist known for his work in classical conditioning, demonstrating learned responses through his experiments with dogs and bell stimuli.

Expectancy

The anticipation or prediction of future events or outcomes, often influencing behavior and decision-making.

Classical Conditioning

The method of acquiring a response through the repetitive coupling of two stimuli; initially, the second stimulus triggers the response, but the first stimulus eventually triggers it alone.