Which of the following was not a reason for the financial collapse in 2008?
A)inaccurate ratings by S&P and Moody's
B)initially low interest rates
C)government promoting aggressive mortgage lending
D)pooling of mortgage backed securities
E)the absence of financial leveraging in the banking industry

Question

Quizplus · Accepted Answer

The absence of financial leveraging (which means using borrowed money to invest) in the banking industry was not a reason for the financial collapse in 2008. In fact, excessive financial leveraging contributed to the collapse. A, B, C, and D were all factors that contributed to the collapse.

Which of the Following Was Not a Reason for the Financial