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:

Ethic Of Caring

A moral framework that emphasizes the importance of interpersonal relationships and compassion as the foundation of ethical action.

Initiative Vs. Guilt

A stage in Erik Erikson's theory of psychosocial development where children learn to assert power and control through directing play and other social interactions, typically occurring around ages 3 to 5.

Erikson

Refers to Erik Erikson, a developmental psychologist known for his theory on the psychosocial development stages of human life.

Industry Vs. Inferiority

A stage in Erik Erikson's theory of psychosocial development where children learn to be competent and productive or feel inadequate and unproductive.