The destabilizing effects of defaulting mortgages quickly spread throughout the financial system because those mortgages were involved in widespread:

A. Diversification

B. Securitization

C. Multiplier effect

D. Real-balance effect

B. Securitization

Economics

You might also like to view...

The best example of a command socialist economy is:

A) Russia. B) China after 1979. C) Cuba. D) the United States.

Economics

Which group within the National Bureau of Economic Research officially determines whether the economy is in a recession or expansion?

A) The G-4 B) The Business Cycle Dating Committee C) The Business Cycle Governors D) The Turning Point Group

Economics