All of the following contributed to the financial crisis in 2008 EXCEPT
A) government bailouts.
B) questionable lending practices.
C) excessive risk taking.
D) investments based on subprime mortgages.
E) declining housing prices.

Question

Quizplus · Accepted Answer

The world experienced a financial crisis in 2008, partially due to excessive risk taking and inappropriate accounting practices. Many banks failed to understand the true state of their financial health. Banks also developed questionable lending practices and investments based on subprime mortgages made to individuals who had poor credit. When housing prices declined and people suddenly found that they owed more on their mortgages than their homes were worth, they began to default.

All of the Following Contributed to the Financial Crisis in 2008