Which of the Following Is NOT True About So-Called Mortgage-Backed

question 87

Multiple Choice

Which of the following is NOT true about so-called mortgage-backed securities:

• A) Before the crisis, they were believed by many banks to be a way of reducing loan risks
• B) Before the crisis, they played a major role in broadening home ownership in America
• C) They were linkages that spread instability across many financial institutions
• D) Their use was strongly discouraged by the Federal government

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