Banks lost trillions of dollars when the housing bubble collapsed because:
A. many large banks held massive quantities of mortgage-backed securities.
B. most of their customers had to close their accounts due to foreclosures.
C. many borrowers defaulted on their mortgages.
D. Both A and B are correct.
Answer: D
You might also like to view...
Refer to the accompanying table. Martha's opportunity cost of making a cake is: Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. 4/3 of a pie. B. 60 pies. C. 3/4 of a pie. D. 6 pies.
It makes sense for Wendy's to advertise its new menu that allows customers to choose fruit or salad as a substitute for French fries in its values meals, as long as doing so raises:
A. revenue by less than the cost of advertising. B. costs. C. revenue by more than it raises the cost of advertising. D. any revenue at all.
Which is a correct match of an economic resource and payment for that resource?
a. Labor and interest income b. Capital and profit c. Land and rental income d. Entrepreneurial ability and wages
Refer to the above figure. What can we say about economic rent?
A. Economic rent equals the area IJK0. B. Economic rent equals the area HJI. C. Economic rent equals the area HJK0. D. There is no economic rent represented in the figure.