CIMA Fundamentals of Business Economics BA1 Question # 2 Topic 1 Discussion

CIMA Fundamentals of Business Economics BA1 Question # 2 Topic 1 Discussion

BA1 Exam Topic 1 Question 2 Discussion:
Question #: 2
Topic #: 1

All of the following were contributory causes of the banking crisis of 2008 (the 'credit crunch') except one. Which ONE is the exception?


A.

Large scale default in the in the US sub-prime mortgage market


B.

Over- capitalization of commercial and investment banks


C.

The bundling of mortgages into collateralized debt obligations which were sold onto banks


D.

Erroneous credit rating of collateralized debt obligations by credit rating agencies


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