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Tracing the Causes of the Recent Banking Crisis, Which of the Following

Question 280

Multiple Choice

Tracing the causes of the recent banking crisis, which of the following organizations' activities is not in the news as having been a contributor to the crisis?


A) The Federal Reserve suppressed interest rates which made it easier for prospective home owners and others to get loans.
B) Congress promoted questionable loans.
C) Banks dealt in MBSs (Mortgage Backed Securities) that were not as safe as assumed.
D) Pension funds invested in risky investments.

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