Which of the Following Was NOT a Factor Leading to the Financial

question 219

Multiple Choice

Which of the following was NOT a factor leading to the financial crisis of 2008?

• A) Low interest rates encouraged a housing boom.
• B) Policymakers underestimated the level of risk inherent in the mortgage market.
• C) The public lacked faith in the ability of the U.S.Treasury to pay on government bonds.
• D) Investors borrowed heavily to purchase securitized mortgages.

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Definitions:

Language Development

The process by which children come to understand and communicate language during early childhood, involving both the acquisition of words and the rules of grammar.

Milestones

Significant markers or events in development or progress.

Intermediate Steps

Actions or stages occurring between the initial and final phases of a process or sequence of events.

Heuristic

A approach to problem-solving that employs a practical method not guaranteed to be optimal or perfect, but sufficient for the immediate goals.