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Commercial Banks Increased Their Involvement in Mortgages Over the Years

Question 1

Multiple Choice

Commercial banks increased their involvement in mortgages over the years due to:


A) the ability to securitize mortgages which made them more liquid.
B) the demands of regulators.
C) the increase in commercial loans demanded due to the development of the commercial paper market.
D) the reduced risk of borrowers' defaulting on mortgage loans.

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