Some observers claim that the U.S. Federal Reserve Board encouraged the housing and credit bubbles by

Question

Quizplus · Accepted Answer

The best choice is D because it accurately states that the Federal Reserve Board did not regulate subprime mortgages and cut interest rates, both of which contributed to the housing and credit bubbles. Not regulating subprime mortgages allowed for the proliferation of risky lending practices, while cutting interest rates made it easier for borrowers to obtain loans and stimulated demand for housing.

Some Observers Claim That the U