question archive Which of the following is false? Select one: A
Which of the following is false? Select one: A
Subject:FinancePrice:2.86 Bought14
Which of the following is false?
Select one:
A. Lax regulation was one of the causes of the Global Financial Crisis of 2007-2009
B. During the Great Depression, uncertainty in financial markets decreased the spread between corporate bonds and Treasury bonds
C. Subprime mortgages refer to mortgages that are given to lower credit worth individuals
D. During the Global Financial Crisis of 2007-2009, the credit rating agencies had little incentive to make sure that their ratings were accurate.
E. Many banks were unwilling to lend each other during the Global Financial Crisis of 2007-2009.
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Option B is False
Credit spread refers to the difference between US Treasury bond and another security of the same maturity. Due to increase in uncertainty, the spread between the corporate bond yield and risk free assets- treasury bonds grew wider.
A: True: The great depression was caused due to lack of regulations
C. During the Great depression loans were given out to individuals with lower creditworthiness.
D: The credit rating agencies were not held liable for the ratings they meted out and so they did not consider the accuracy of the ratings.
E. During the Global crisis, the banks were also under heavy losses and so they did not give out loans to each other.
