FI used the repo market to get funding - these transactions would appear under the...

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Accounting

FI used the repo market to get funding - these transactions would appear under the Liability section of their balance sheet.

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Which of the following actions did not contribute the housing crash prior to the crisis of 2007-2008?

Over-extending credit to subprime borrowers using fixed-rate mortgages.

Over-relying on credit default swaps to insure against credit risk.

The Fed rapidly increasing interest rates in the years before the crisis to combat inflation.

FIs not adequately assessing credit risk using the Five Cs of credit.

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