Multiple Choice
According to Koos Timmermans 'three types of leverage helped propel the boom and have now accentuated the bust':
A) US financial institutions loaded up on debt; US corporations increased their debt to equity ratios; and the US government increased the national debt
B) US financial institutions were exposed to liquidity leverage via their use of structure investment vehicles; US corporations increased their debt to equity ratios; and the US government increased the national debt
C) US financial institutions were exposed to product leverage via complex instruments such as CDOs; US corporations increased their debt to equity ratios; and the US government increased the national debt
D) BUS financial institutions loaded up on debt; US financial institutions were exposed to liquidity leverage via their use of structure investment vehicles; and US financial institutions were exposed to product leverage via complex instruments such as CDOs
Correct Answer:
Verified
Correct Answer:
Verified
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