Deregulation of which of the following industries was a major contributor to the collapse of the subprime mortgage industry?

Question

Quizplus · Accepted Answer

The banking industry was deregulated in the 1990s, allowing for the creation of complex financial instruments such as mortgage-backed securities and collateralized debt obligations. These instruments played a major role in the subprime mortgage crisis of 2008, as they were used to package and sell risky loans to investors. The lack of regulation and oversight in the banking industry allowed for these risky practices to take place, ultimately leading to the collapse of the subprime mortgage market.

Deregulation of Which of the Following Industries Was a Major