One of the Core Problems That Created the Financial Meltdown

question 73

Multiple Choice

One of the core problems that created the financial meltdown of 2008 was that large loans were made to individuals who could not repay them, and the finance companies purchased these bad debts without realizing how poor the prospects of repayment were. Which of the following decision-making errors was made by the lenders and borrowers?

• A) hindsight bias
• B) availability bias
• C) overconfidence bias
• D) confirmation bias
• E) anchoring bias

Understand the structure and essential components of a routine request in business communication.

Identify the appropriate location for stating the main idea and specific details in a routine request.

Recognize how to effectively incorporate deadlines into a routine request.

Comprehend the function and organization of the opening, body, and closing parts of a routine request.

---

Definitions:

Mid-ocean Ridge

An underwater mountain range, formed by plate tectonics, that encircles the globe, marked by volcanic activity and seafloor spreading.

Island Arc

A curved chain of volcanic islands located at a tectonic plate margin, formed by the subduction of an oceanic plate.

Mantles Rise

The upward movement of mantle material in the Earth, often related to thermal convection and tectonic processes.

Rising Mantle

The ascent of mantle material towards the Earth's surface, potentially leading to volcanic activity where the crust is thin.