13. The bank crisis primarily occurred because: A. Banks required extra collateral for their mortgages B. Loan originators were paid bonuses for each additional signed mortgage contract they produced, yet they did not carry any risk if these mortgages defaulted C. Credit rating agencies refused to provide ratings on bundled mortgage portfolio:s sold by the banks to large investors D. Property values increased too much and buyers refinanced their mortgages with different banks 14. Joe, the CEO of Schmo Co., is trying to find a way to get some cash to grow his business. IfJoe wanted to maximize net cash flows and maximize net income this year which of the following routes would be best? A. Borrow $1,000,000 at 6% for 3 months B. Borrow $1,000,000 at 3% for 12 months C. Sell $1,000,000 worth of stock. D. Sell some unneeded equipment for S1,000,000 that had a book value of S800,000. 15. Of the following, which would make the least sense to list together? A. Inventory, Cost of Goods Sold, Accounts Payable, Operating Cash Flows B. Revenues, Expenses, Gains, Losses, Dividends, Retained earnings C. Prepaid Expenses, Cash, Land, Patents, Goodwill D. Interest Revenue, Equipment, Dividends Received, Investing Cash Flows E. Common Stock, Notes Payable, Dividends Paid, Financing Cash Flows