Which of the Following Is Frequently Cited as a Major

question 71

Multiple Choice

Which of the following is frequently cited as a major contributor to the financial crisis of 2008?

• A)The absence of depositor insurance, which could have bolstered customer confidence
• B)Individuals and financial institutions borrowing excessively to finance investments
• C)Lack of governmental efforts to stem the distress along with non-existent financial aids to banks
• D)Excessive transfer payments made by the government
• E)Excessive government spending on defense

---

Definitions:

Internal-Unstable

Attributes related to factors within an individual that can vary, such as effort or mood, influencing their behavior or achievements.

Internal-Stable

A term related to attribution theory, indicating a belief that one's behavior or event outcome is due to personal factors that are consistent over time.

External-Unstable

Characteristics of attributions referring to causes outside oneself that are variable and can change over time.

Self-Fulfilling Prophesy

A prediction that directly or indirectly causes itself to become true, due to the positive feedback between belief and behavior.