Which of the following did NOT contribute to the financial crisis of 2007-2008?
A) highly leveraged investment banks
B) highly leveraged homeowners
C) fear on the part of short-term lenders
D) high executive compensation in banking

Question

Quizplus · Accepted Answer

While high executive compensation in banking may have contributed to certain issues within the financial system, it was not a direct cause of the financial crisis of 2007-2008. The other choices, highly leveraged investment banks and homeowners, and fear on the part of short-term lenders, were all major factors that contributed to the crisis.

Which of the Following Did NOT Contribute to the Financial