One Lesson from the Credit Crunch Is That

question 21

Multiple Choice

One lesson from the credit crunch is that

• A)in the aggregate, credit scores tend to understate the probability of default-thereby a pool of subprime mortgages is actually quite a safe investment since not every borrower defaults.
• B)moral hazard, while an issue in the market for used cars, does not seem to affect the U.S. financial system due to the effective regulatory environment.
• C)bankers seem not to scrutinize credit risk as closely when they serve only as mortgage originators and then pass it on to MBS investors rather than hold the paper themselves.
• D)none of the above

Learn strategies for acknowledging and incorporating feedback from reviewers.

Understand the stages of the writing process and the elements involved.

Understand the non-linear nature of the technical writing process.

Identify methods for effective proofreading of technical documents.

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Definitions:

Independent Parts

Components within a system that operate or function separately from one another.

Point Of View

A specific attitude or way of considering a matter, influenced by one's personal experience and beliefs.

Pluralistic Society

A society that is characterized by a diversity of cultural, ethnic, religious, and ideological perspectives, encouraging coexistence and mutual respect among different groups.

Ethnic Society

A group of people who share common cultural, linguistic, or ancestral ties.