Which of the Following Did NOT Significantly Contribute to the Housing

question 65

Multiple Choice

Which of the following did NOT significantly contribute to the housing crisis of 2008?

• A)Home prices increased to levels rarely experienced in the past.
• B)Many homeowners borrowed loans against their home equity to cover family expenses.
• C)New housing loans made to risky applicants were sold by banks to larger firms,and the firms converted these loans to derivative funds.
• D)Home prices abruptly plunged by 30 percent on average after the housing market peak in 2006.
• E)In 2006,the Federal Government conducted a series of rigorous hearings to investigate the creation and sale of derivative funds.

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Definitions:

Tradable Emissions Permit

A regulatory tool that allows businesses to buy, sell, or trade allowances that permit them a certain amount of pollutant emissions, encouraging reduction in pollution in a cost-effective manner.

Discharge Level

Discharge level typically pertains to the volume or rate at which a fluid, such as water or gas, is expelled from a given source, often used in environmental science to refer to pollution control.

Pollutants

Substances that contaminate the environment, causing harm to ecosystems and human health.

Tradable Emissions Permits

A market-based approach to controlling pollution by providing economic incentives for achieving reductions in the emissions of pollutants.