To the extent that the undervaluation of the riskiness of mortgage-backed securities contributed to the financial crisis of 2008-2009 in the United States,blame for this mistake lies with:

Question

Quizplus · Accepted Answer

The rating agencies were responsible for rating mortgage-backed securities as safe investments, even though they were actually much riskier. This led investors to underestimate the risk they were taking on and ultimately contributed to the financial crisis. Mortgage brokers, investment banks, and government policymakers may have played a role in the crisis, but the undervaluation of risk by rating agencies was a key factor.

To the Extent That the Undervaluation of the Riskiness of Mortgage-Backed