Which of the Following Did NOT Contribute to the Financial

question 240

Multiple Choice

Which of the following did NOT contribute to the financial crisis of 2007-2008?

• A) highly leveraged investment banks
• B) highly leveraged homeowners
• C) fear on the part of short-term lenders
• D) high executive compensation in banking

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Definitions:

Rate Of Return

The profit or deficit experienced on an investment throughout a designated period, shown as a percentage of the original investment amount.

Building Lot

A parcel of land designated for constructing a building or set of buildings.

Equivalent Payment

A payment amount that, when adjusted for interest and time, is equal in value to a different payment amount over a different time period.

Focal Date

A specific point in time that serves as a reference or target for events or operations.