Which of the Following Was Not a Reason for the Financial

question 58

Multiple Choice

Which of the following was not a reason for the financial collapse in 2008?

• A)​inaccurate ratings by S&P and Moody's
• B)​government promoting aggressive mortgage lending
• C)​pooling of mortgage backed securities
• D)​the absence of financial leveraging in the banking industry

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Definitions:

Simple Regression

Simple regression is a statistical method used to examine the relationship between one independent variable and one dependent variable by fitting a linear equation to observed data.

Slope

The measure of the steepness or incline of a line, indicating the rate of change between two variables.

Mean Value

Mean value is the average of a set of numbers, calculated by dividing the sum of all values by the quantity of numbers.

Error Term

A variable in a statistical model that captures the difference between observed and predicted values.