What was the source of the problems encountered by many financial firms during the late 2000s?

What will be an ideal response?

The primary source of the problems was that financial firms began securitizing home mortgages. This created a large increase in mortgages being granted to "sub-prime" borrowers, who are borrowers with flawed credit histories, and "Alt-A" borrowers, who did not have to document their incomes when applying for mortgages. When housing prices began falling in 2006, many of these borrowers began to default on their mortgages, causing many financial institutions to suffer heavy losses.

Economics

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In the United States, the highest quintile of income earners contribute ________ of all federal tax dollars received, and the lowest quintile of income earners contribute ________ of all federal tax dollars received

A) 20%; 20% B) 68.8%; 0.4% C) 24%; 1.5% D) 29.4%; 11.5%

Economics

The World Trade Organization is designed to do the following except:

A. enforce trade agreements between nations. B. monitor trade agreements. C. ensure that trade doesn't adversely affect the environment. D. promote free trade internationally.

Economics