Some Analysts Blame the Financial Crisis of 2007-2009 on Federal

Multiple Choice

Some analysts blame the financial crisis of 2007-2009 on Federal Reserve policy. They argue that

A) a restrictive policy lowered aggregate demand and GDP.
B) low interest rates encouraged excessive mortgage borrowing, leading to the housing bubble.
C) the Fed securitized the mortgages into collateralized debt obligations and encouraged excessive risk taking.
D) did not adequately regulate the mortgage market's credit standards for issuing loans as required by the Federal Reserve Act.