2
QuizMultiple Choice

Asset-backed Securities, Loan Sales, and Derivatives

Question 2 • (AG Q4) Financial Literacy: 25-26 (JRush)

The housing market collapse of 2009 could have been largely avoided if Standard and Poor's ratings were not ignored.

Answer
A
True
B
False

Explanation

False. Standard & Poor’s generally gave many mortgage-backed securities high ratings before the crisis, even though they carried substantial risk. The problem was that the ratings failed to warn investors accurately, not that investors simply ignored clear warnings from S&P.

AI-written and checked against the verified answer.

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