Question

Analysts and theorists have debated over the different factors that caused the subprime mortgage meltdown. According to your understanding of the crisis, which of the following factors led to the financial crisis? Check all that apply. Regulations were relaxed, leading to nonqualifying mortgages getting approved for loans. Investors were fully aware of the risks involved, yet still settled with low returns. Credit default swaps claimed to insure CDOs. Real estate appraisers and rating agencies were lax. O

Answer 1

Factors that apply:

*Regulations were relaxed…...........for loans.

*Credit default swaps…....CDOs.

*Real estate…............were lax.