Which of the following contributed most to the economic crisis that began in 2007?
A) Deregulated commercial banks were allowed to take more risks than investment banks.
B) Deregulated commercial banks were allowed to trade securities and take more risks than they had been in the past.
C) Deregulated investment banks were allowed to trade securities and take more risks than they had been in the past.
D) Deregulated investment banks were allowed to take more risks than commercial banks.

Question

Quizplus · Accepted Answer

Deregulated commercial banks were allowed to trade securities and take more risks than they had been in the past, which played a significant role in the economic crisis that began in 2007. This deregulation led to increased exposure to risky mortgage-backed securities and contributed to the financial meltdown.

Which of the Following Contributed Most to the Economic Crisis