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

Question

Quizplus · Accepted Answer

While excessive confidence about the stock market may have played a role in individual investment decisions, it was not a major cause of the financial crisis. The other options all contributed to the crisis by increasing risk and instability in the financial system.

Which of the Following Is NOT a Reason for the Financial