During the financial crisis of 2007-2009
A) mortgage-backed securities became more liquid.
B) information costs of mortgage-backed securities rose.
C) information costs of mortgage-backed securities declined.
D) the tax treatment of mortgage-backed securities was changed.

Question

Quizplus · Accepted Answer

During the financial crisis of 2007-2009, the creditworthiness of mortgage-backed securities was questioned, resulting in an increase in information costs. This led investors to demand more information and transparency, which increased the cost of analyzing and evaluating these securities.

During the Financial Crisis of 2007-2009