With respect to the financial crisis of 2007-2009, some economists argue that financial service firms should have done a better job of assessing the risk involved in investing in mortgage-backed securities.Better governance in this context refers to which of the following?

Question

Quizplus · Accepted Answer

Better governance would involve improvements in all three areas listed, including aligning the actions of top managers with shareholder preferences through improved corporate governance structures, improving the assessment of investments to better understand potential risks, and improving monitoring of these investments to identify potential issues before they become major problems.

With Respect to the Financial Crisis of 2007-2009, Some Economists