What role did the following play in the crisis?
a. leverage,
b. securitization and derivatives-mbs, cdos, cds,
c. funding mismatch,
d. shadow banking sector,
e. deregulation,
f. too big to fail/moral hazard,
g. wealth effect
h. animal spirits, deleveraging, fire sales

 The correct answer is :  a. Leverage: Crises are more serious when they are accompanied by a credit boom and a very high leverage of market players.

b. securitization and derivatives-mbs, cdos, cds: securitization was the practice of buying mortgages. High risk borrowers with not-so-perfect credit had higher interest rates on their mortgages due to the increased risk of default.

c. . funding mismatch: The banks used securities that were backed by leveraged mortgages and the cash flow did not meet the liabilities.

d. shadow banking sector: Non-bank financial institutions that provide funds but do not have health insurance. Short-term lenders refused to refinance.

e deregulation: Commercial and investment banks assumed large risks due to discrete regulatory changes from 1999 to 2004.

F. too big to fail / moral hazard: The government intervened and saved many companies, because their failure would be a disaster for the general economy.

g. wealth effect: Asset prices increased during the boom years, thus boosting consumption and fueling a drop in the savings rate.

h. animal spirits, deleveraging, fire sales: many institutions needed cash to meet short-term obligations. There was a need to sell assets in the market down.

hi there!

moors is essentially another word for muslims.

the moors invaded spain around year 700, during their time ruling spain the muslims promoted religious tolerance (moors tolerated jews who were viewed as outcasts by northerners), the moors as well had a great impact on their language, and architecture (palaces were created).

i hope this !

answer; night terrors;