Recent Problems Facing the US Financial System Were the Result

question 95

Multiple Choice

Recent problems facing the US financial system were the result of all of the following except:

• A) a huge increase in the amount of mortgage-backed securities being bundled up and sold in the markets
• B) a huge drop in value of mortgage-backed securities
• C) an increase in the use of commercial paper for short-term financing
• D) all of the above contributed to recent problems with the U.S. financial system

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Definitions:

Shopping Outlet

A retail store or distribution channel through which products are sold to consumers.

Hexatriene

An organic compound containing six carbon atoms connected by a linear chain of alternating single and double bonds.

Wavelength

The distance between successive crests of a wave, typically used in the context of electromagnetic radiation.

LUMO

Lowest Unoccupied Molecular Orbital, the lowest energy molecular orbital that is vacant and can accept electrons.