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

Question

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

Quizplus · Accepted Answer

The absence of financial leveraging in the banking industry was not a reason for the financial collapse in 2008. In fact, the excessive use of financial leveraging by banks was one of the primary causes of the crisis.

Which of the Following Was Not a Reason for the Financial