Dr. Bernanke argued two problems contributing to the financial crisis included:

Question

Dr. Bernanke argued two problems contributing to the financial crisis included:

A banks reliance on long-term funding; and the increased use of non-standard mortgages such as Adjustable Rate Mortgages ARMS.

B banks reliance on short term funding; and the increased use of non-standard mortgages such as Adjustable Rate Mortgages ARMS.

C banks reliance on short term funding; and the increased use of non-standard mortgages such as fixed rate, 30-year mortgages.

D banks reliance on long-term funding; and the increased use of non-standard mortgages such as fixed rate, 30-year mortgages.

Explanation / Answer

Answer is A. Adjustable rate mortgages simply became a nightmare. Shadow banks depended on long term funds

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.