One reason the housing bubble occurred is because:
A) the recency effect caused homes to typically be undervalued.
B) the herd instinct caused everyone to believe home prices would continue to fall.
C) securitization removed much of the risk from the sellers of subprime mortgages.
D) All of these statements are true.
Correct Answer:
Verified
Q49: Local banks could pass the risk involved
Q52: The practice of packaging individual debts into
Q59: The practice of dividing packages of debts
Q78: The introduction of the practice of securitization
Q79: Because local banks earn fees for each
Q81: During most of the 1990s and 2000s,
Q82: One reason consumers were able to assume
Q83: As the housing bubble began to collapse,
Q84: Banks lost trillions of dollars when the
Q85: Foreclosure is when a:
A) bank takes ownership
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