Which of the following was NOT a factor leading to the 2007-2008 financial crisis?
A) low interest rates encouraging a housing boom
B) underestimation of the level of risk inherent in the mortgage market
C) lack of faith in the ability of the U.S.Treasury to pay on government bonds
D) investors buying trillions of dollars of assets that depended on rising housing values

Question

Quizplus · Accepted Answer

Lack of faith in the ability of the U.S. Treasury to pay on government bonds did not play a significant role in causing the financial crisis. The main factors were low interest rates fueling a housing bubble, underestimation of the risk in the mortgage market, and investors buying assets that depended on rising housing values.

Which of the Following Was NOT a Factor Leading to the 2007-2008