With Respect to the Financial Crisis of 2007-2009, Some Economists

question 144

Multiple Choice

With respect to the financial crisis of 2007-2009, some economists argue that financial service firms should have done a better job of assessing the risk involved in investing in mortgage-backed securities.Better governance in this context refers to which of the following?

• A)improvements in aligning the actions of top managers with the preferences of shareholders
• B)improving the assessment of investments.
• C)improving the monitoring of investments.
• D)all of the above

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Definitions:

Thalamus

A brain structure that acts as a relay station, processing and transmitting sensory information to the appropriate areas of the brain for further processing.

Cortex

The outer layer of the cerebrum in the brain, associated with higher brain functions such as thought and action.

Smell

A sense that detects odors or scents through the olfactory system, typically perceived through the nose.

Supertasters

Individuals with a heightened sensitivity to tastes, especially bitter flavors, due to a higher number of taste papillae on their tongue.