Which of the Following Did Not Contribute to the Financial

question 59

Multiple Choice

Which of the following did not contribute to the financial crisis?

• A) Solid credit ratings from the ratings agencies
• B) The extension of credit to high-risk borrowers
• C) The merger of JPMorgan Chase and Bear Stearns
• D) All of the options contributed to the financial crisis.

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Definitions:

Capital Maintenance

An accounting concept focused on ensuring that a company's capital is preserved, aiming to maintain the purchasing power of shareholders' capital over time.

Corporate Income

The total income of a corporation or business entity, derived from its operations and investment activities.

Net Assets

The total assets of a company or individual minus their total liabilities, reflecting the actual value of the entity's holdings.

Core Activities

Core activities are the central and essential operations or functions of a business that are directly related to its main purpose and generate the majority of its revenue and profits.