The Recent Financial Crises Was Exacerbated by

Multiple Choice

The recent financial crises was exacerbated by

A) managers who overestimated risk and hence did not invest sufficient funds.
B) managers who underestimated the real risks of their decisions and borrowed excessively.
C) a lack of financial leverage that made U.S. firms less competitive in world markets.
D) extremely high interest rates in the United States that stifled investment.