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In 2000, the Market for Mortgage-Backed Securities

Question 18

Multiple Choice

In 2000, the market for mortgage-backed securities:


A) grew rapidly because economists had developed a model that seemed capable of predicting the risk associated with owning mortgage-backed securities.
B) closed down because Congress outlawed mortgage-backed securities.
C) took tremendous losses because the price of energy reached record highs.
D) was developed only in Europe.

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