Some economists believe that one factor that caused the financial crisis of 2007-2009 was top managers of large financial services firms making riskier investments than were in the best interests of the firms' shareholders.
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Q201: Tying the salaries of top managers to
Q207: To reduce the principal-agent problem
A)boards-of-directors can tie
Q209: When mortgage loans are securitized,they are
A)bundled together
Q215: The principal-agent problem is
A)often more severe for
Q218: When groups of mortgages are bundled together
Q218: Mortgage-backed securities are similar to bonds in
Q219: The legislation passed in 2010 that was
Q224: Traditionally, Wall Street investment banks had been
Q232: With respect to the financial crisis of
Q240: The financial statements of firms generally are
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