Author Question: Credit default swaps were A) an unregulated financial innovation that helped create the financial ... (Read 102 times)

Cooldude101 · **on:** Sep 10, 2018

Credit default swaps were

A) an unregulated financial innovation that helped create the financial crisis by transferring credit risks away from banks.
B) low-interest credit cards created by the U.S. Federal Reserve Bank.
C) a part of the war against terrorism.
D) a form of real estate flipping.

Question 2

Fannie Mae and Freddie Mac

A) were a fictitious American couple used by the media as an example of overspending.
B) were U.S. government corporations that made more money available to lenders and borrowers preceding the crisis by selling loans to investors.
C) were agencies that warned the public about the dangers of subprime loans before the crisis.
D) were corporations that requested loans from the European Union to stabilize Ireland's failing economy.