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Which of the following is NOT a reason for the financial crisis of 2007–2008? increases in the leverage ratios for financial intermediaries excessive confidence about the stock market excessive securitization
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Which of the following is NOT a reason for the financial crisis of 2007–2008? increases in the leverage ratios for financial intermediaries excessive confidence about the stock market excessive securitization of liabilities collapse of the shadow banking system

User Salines
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Answer:

The answer is C. Excessive confidence about the stock market

Step-by-step explanation:

The financial crisis of 2007–2008 was mainly caused by financial intermediaries (banks, insurance). It was caused by an unregulated subprime mortgage. The price of houses significantly dropped.

There were significant increase in leverage ratio, the banking system collapsed due to the failed mortgage plans, liabilities have excessive collaterals.

The crisis has nothing to do with stock market.

User McKinley
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