10) Many S&Ls were again distressed in the late 1980s due to

A. Predatory lending

B. Heavy investments in junk bonds

C. None of the above

11) Which of the following contributed to the mortgage crisis of 2007? [I] extensive use of high risk and complex financial derivatives [II] Decline in mortgage underwriting standards [III] rapid growth and collapse of home prices, especially between 2000 and 2007

A. I and II only

B. I, II, III

C. I and III only

12) Which of the following financial derivatives was extensively used in the period leading up to the 2008 financial crisis and was also a contributor to the crisis itself?

A. Option contracts

B. Forward currency contracts

C. Futures contracts

D. None of the above