According to the Authors, All of These Are Factors That

question 31

Multiple Choice

According to the authors, all of these are factors that laid the groundwork for the disaster in the United States in 2008 EXCEPT:

• A) borrowing was expensive
• B) real estate became the investment of choice
• C) mortgage originators peddled "Liar Loans"
• D) banks securitized the poison and spread it around

---

Definitions:

Traditionally

In a way that follows long-established customs, beliefs, or methods.

James Marcia

A developmental psychologist known for his work on adolescent identity formation and his theory of identity statuses.

Identity Diffusion

A status in identity development where an individual hasn’t committed to an identity and lacks direction, often characterized by a lack of personal investment and decision-making.

Moratorium

A period of delay or suspension, often used in developmental psychology to describe a period where an individual delays making decisions about identity or career.