Which of these was NOT a factor leading to the 2007-2009 financial crisis?
A) low interest rates encouraging a housing boom
B) underestimation of the level of risk inherent in the mortgage market
C) lack of faith in the ability of the U.S. Treasury to pay on government bonds
D) investors buying trillions of dollars of assets that depended on rising housing values

Question

Quizplus · Accepted Answer

Lack of faith in the ability of the U.S. Treasury to pay on government bonds was not a factor leading to the 2007-2009 financial crisis. The other three choices all played a role in the crisis, with low interest rates encouraging a housing boom, underestimation of the risk in the mortgage market, and investors buying assets that depended on rising housing values contributing to the eventual collapse of the housing market and wider financial system.

Which of These Was NOT a Factor Leading to the 2007-2009