Bernanke argued two problems contributing to the financial crisis included: banks reliance on long-term funding; and the increased use of non-standard mortgages such as Adjustable Rate Mortgages ARMS. O banks reliance on short term funding; and the increased use of non-standard mortgages such as Adjustable Rate Mortgages ARMS. banks reliance on long-term funding; and the increased use of non-standard mortgages such as fixed rate, 30-year mortgages. banks reliance on short term funding; and the increased use of non-standard mortgages such as fixed rate, 30-year mortgages.
Bernanke argued two problems contributing to the financial crisis included: banks reliance on long-term funding; and the increased use of non-standard mortgages such as Adjustable Rate Mortgages ARMS. O banks reliance on short term funding; and the increased use of non-standard mortgages such as Adjustable Rate Mortgages ARMS. banks reliance on long-term funding; and the increased use of non-standard mortgages such as fixed rate, 30-year mortgages. banks reliance on short term funding; and the increased use of non-standard mortgages such as fixed rate, 30-year mortgages.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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https://www.federalreserve.gov/aboutthefed/educational-tools/lecture-series-federal-reserve-response-to-the-financial-crisis.htm
![Bernanke argued two problems contributing to the financial crisis
included:
O banks reliance on long-term funding; and the increased use of non-standard
mortgages such as Adjustable Rate Mortgages ARMS.
O banks reliance on short term funding; and the increased use of non-standard
mortgages such as Adjustable Rate Mortgages ARMS.
banks reliance on long-term funding; and the increased use of non-standard
mortgages such as fixed rate, 30-year mortgages.
O banks reliance on short term funding; and the increased use of non-standard
mortgages such as fixed rate, 30-year mortgages.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5498129d-fa90-4054-9767-1cffe54599e5%2F22babd97-8598-4417-a698-66b127dd2d98%2Fc2hqpi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Bernanke argued two problems contributing to the financial crisis
included:
O banks reliance on long-term funding; and the increased use of non-standard
mortgages such as Adjustable Rate Mortgages ARMS.
O banks reliance on short term funding; and the increased use of non-standard
mortgages such as Adjustable Rate Mortgages ARMS.
banks reliance on long-term funding; and the increased use of non-standard
mortgages such as fixed rate, 30-year mortgages.
O banks reliance on short term funding; and the increased use of non-standard
mortgages such as fixed rate, 30-year mortgages.
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