Which of the following did not contribute to the 2007

Question

Which of the following did not contribute to the 2007 - 2008 financial crisis?
A) Housing bubble
B) Lax lending standards
C) Globalization of financial investments and instruments
D) Mortgage loans made with moderate loan-to-value ratios
E) Push for government sponsored entities (GSEs) to purchase lower quality loans

Quizplus · Accepted Answer

Mortgage loans made with moderate loan-to-value ratios did not contribute to the crisis. The crisis was largely fueled by high-risk lending and borrowing practices, including loans made with high loan-to-value ratios, not moderate ones.