Banks lost trillions of dollars when the housing bubble collapsed because:
A. many borrowers defaulted on their mortgages.
B. many large banks held massive quantities of mortgage-backed securities.
C. most of their customers had to close their accounts due to foreclosures.
D. Both A and B are correct.
D. Both A and B are correct.
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A product that is a close substitute but not a perfect substitute for the products of the other firms is called
A) a homogeneous product. B) an efficient product. C) a differentiated product. D) an inelastic product.
In what way or ways can strategies more complicated than simple actions?
a. They can be conditioned on a first mover's action. b. They can involve random choices. c. Both a and b. d. Neither a or b.
The main difference between a firm that is a price searcher and a firm that is a price taker is that a
a. price searcher produces products that are identical to its competitors' products. b. price taker can decide what price to charge for its product. c. price searcher cannot decide what price to charge for its product. d. price searcher will still be able to sell some of its product if it increases its price.
A high rate of black male joblessness
A. has not existed since the Great Depression. B. has developed just since the 2001 recession and the subsequent "jobless recovery." C. has been very serious problem for at least a decade. D. never existed.