Some observers claim that the U.S. Federal Reserve Board encouraged the housing and credit bubbles by:
A)not regulating subprime mortgages.
B)cutting interest rates.
C)enforcing mark-to-market accounting.
D)a and b
E)a and c

Question

Quizplus · Accepted Answer

The U.S. Federal Reserve Board is often criticized for encouraging the housing and credit bubbles by not regulating subprime mortgages and cutting interest rates, which made borrowing cheaper and increased demand for mortgages, including risky ones.

Some Observers Claim That the U