Which of the Following Represents the Most Significant Reason for the Collapse

question 41

Multiple Choice

Which of the following represents the most significant reason for the collapse of the U.S.banking system in 2008?

• A)In the 1990s, most large U.S. investment banks were reorganized into public trading companies.
• B)In the 2000s, most investment banks started to generate most of their income from fees charged for underwriting, consulting, and brokerage activities.
• C)New regulations introduced in the 2000s resulted in restrictions that restrained the operations of investment banks.
• D)New regulations in the 2000s allowed investment banks to issue unprecedented amounts of debt to finance their operations.

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Definitions:

Charles Darwin

A 19th-century naturalist best known for his contributions to the science of evolution, proposing that species evolve over time through natural selection.

Dmitry Belyaev

A Russian geneticist known for his domestication of the silver fox to study the process of domestication and the genetics of behavior.

Thomas Bouchard

A psychologist best known for his research on twin studies, exploring the influence of genetic and environmental factors on human behavior.

Reproductive Success

The success of an organism in passing its genes to the next generation, often measured by the number of offspring that survive to reproductive age.