Savings institutions were adversely affected by the credit crisis because of their exposure to ____.
A)deposits
B)mortgages
C)commercial loans
D)loans from the Federal Reserve

Question

Quizplus · Accepted Answer

Savings institutions typically hold a large amount of mortgage-backed securities, which made them vulnerable during the credit crisis when many borrowers defaulted on their mortgage payments. This caused a significant decrease in the value of these securities and led to losses for savings institutions.

Savings Institutions Were Adversely Affected by the Credit Crisis Because