A Study of Bankruptcies in the United States Disproved a Number
A study of bankruptcies in the United States disproved a number of common myths,determining that __________.
A)"credit card junkies" account for less than 2 percent of bankruptcies
B)most people who go bankrupt are homeowners who can no longer pay their debts
C)about 10 percent of bankruptcies involve risky financial ventures
D)All of the above
E)None of the above
The continuing crisis of __________ in the United States accounts for about half of all household bankruptcies.
B)credit card debt
Which of the following did NOT significantly contribute to the housing crisis of 2008?
A)Home prices increased to levels rarely experienced in the past.
B)Many homeowners borrowed loans against their home equity to cover family expenses.
C)New housing loans made to risky applicants were sold by banks to larger firms,and the firms converted these loans to derivative funds.
D)Home prices abruptly plunged by 30 percent on average after the housing market peak in 2006.
E)In 2006,the Federal Government conducted a series of rigorous hearings to investigate the creation and sale of derivative funds.
In attempting to determine who was to blame for the 2008 housing bubble and the subsequent economic recession,all of the arguments below have been made,EXCEPT _______.
A)The government decreased its influence and oversight over the creation and trading of real estate derivatives.
B)Major financial institutions and insurance companies like AIG and Citigroup were financially negligent and had long planned to defraud innocent homeowners.
C)Corporate executives purchased stock options in their corporations and cashed in when they knew their companies' earnings records were falsified to give confidence to the public.
D)Tax cut legislation in 2001 cut federal revenues by at least $1.35 trillion dollars,partly by reducing taxes paid by the wealthy.
E)The rich have felt that it is good to become as wealthy as possible,taking little responsibility for the public good.