The systemic risk that led to the financial crisis of 2008 was increased by ________.

Question

Quizplus · Accepted Answer

The systemic risk that led to the financial crisis of 2008 was increased by all the given options, including collateralized debt obligations, subprime mortgages, and credit default swaps. These financial instruments were heavily interconnected and caused a ripple effect throughout the entire financial system when the subprime mortgage market collapsed. This led to widespread defaults and bankruptcies, ultimately resulting in the global financial crisis.

The Systemic Risk That Led to the Financial Crisis of 2008