Which of the Following Statements Regarding Goldman Sachs Avoiding Huge

question 8

Multiple Choice

Which of the following statements regarding Goldman Sachs avoiding huge losses from mortgage-backed securities (MBS) is INCORRECT?

• A) Goldman Sachs's model for measuring risks failed to give any indication of the impending crisis in the housing market.
• B) Goldman Sachs's model for measuring risks indicated that there was something wrong in the MBS market.
• C) Goldman Sachs convened a meeting of risk managers and senior executives who discussed the market and decided to reduce their MBS risk exposure.
• D) Goldman Sachs's action enabled the firm to avoid billions of dollars in losses when the housing market crashed in summer 2007.
• E) While some observers claim that this incident illustrated a failure of models,a careful consideration reveals that by raising warning signs in a timely fashion,the model saved the firm from multibillion dollar losses.

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Definitions:

Industrial-Organizational Psychologists

Psychology professionals who apply psychological principles and research methods to workplace challenges, focusing on behavior in professional settings.

Applied Research

Research aimed at solving practical problems rather than acquiring knowledge for knowledge's sake.

Biopsychosocial Approach

An interdisciplinary model that looks at the interconnection between biology, psychology, and socio-environmental factors in understanding human health and illness.

Counseling Psychologist

A psychologist who specializes in providing guidance and support to help individuals cope with personal, social, or behavioral issues affecting their well-being.