Recent problems facing the U.S. financial system were the result of all but which one of the following?
A) A huge increase in the amount of mortgage-backed securities being bundled up and sold in the markets
B) A huge drop in the value of mortgage-backed securities
C) An increase in the use of commercial paper for short-term financing
D) The government permitting commercial and investment banks to merge

Question

Quizplus · Accepted Answer

The recent problems in the U.S. financial system were primarily related to issues in the housing market and regulatory policies, not an increase in the use of commercial paper for short-term financing. Choices A, B, and D directly relate to the housing crisis and regulatory changes that contributed to the financial system's instability.

Recent Problems Facing the U