To the Extent That the Undervaluation of the Riskiness of Mortgage-Backed

question 48

Multiple Choice

To the extent that the undervaluation of the riskiness of mortgage-backed securities contributed to the financial crisis of 2008-2009, blame for this mistake lies with:

• A) mortgage brokers.
• B) investment banks.
• C) rating agencies.
• D) government policymakers.

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Definitions:

Affirmative Defense

A defense used in litigation where the defendant introduces evidence, which, if found to be credible, will negate criminal or civil liability, even if it is proven that the defendant committed the alleged acts.

Reply

A response or answer to a question or statement.

Interrogatory

A formal set of written questions required to be answered under oath, used as a part of discovery process in litigation.

Appellate Courts

Courts with the authority to review and revise the outcomes of decisions made by lower courts.