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The Mortgage-Backed Securities Issued by Investment Banks Caused Many Investment

Question 170

Multiple Choice

The mortgage-backed securities issued by investment banks caused many investment banks to fail when


A) stock prices declined by approximately 40 percent in 2008.
B) housing prices increased rapidly beginning in 2002.
C) federal regulators required investment banks to maintain more capital against their residential housing loans than was true for commercial business loans.
D) the default rates of the mortgages financed by the securities increased sharply.

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