For financial institutions in the above 20-year period, the expectations of continued economic growth partly explain how attention turned from what might be termed 'prudent' lending to:

Question

Quizplus · Accepted Answer

The sentence suggests that financial institutions turned to riskier investments, and the phrase "on the back of new financial instruments" indicates that these riskier investments were made possible by the development of new financial instruments. Therefore, D is the best choice.

For Financial Institutions in the Above 20-Year Period, the Expectations