Recent problems facing the US financial system were the result of all of the following except:
A) a huge increase in the amount of mortgage-backed securities being bundled up and sold in the markets
B) a huge drop in value of mortgage-backed securities
C) an increase in the use of commercial paper for short-term financing
D) all of the above contributed to recent problems with the U.S. financial system

Question

Quizplus · Accepted Answer

While A and B did contribute to the problems facing the US financial system, C (an increase in the use of commercial paper for short-term financing) was not a direct cause of the problems. Instead, it was a symptom of the larger issues in the financial system.

Recent Problems Facing the US Financial System Were the Result