14. Which of the following statements was true about the flaws in the securitization process prior to the start of the credit crisis in 2007? I. An active originate-to-distribute model where a strong profit motive took precedence over ethical lending and underwriting. II. Adoption of structured products helped investors understand and evaluate the full extent of the risk. III. Structured investment vehicles (SIVs) were used to enhance transparency and the risk discovery process for investors and regulators. IV. Banks held securitized assets in off-balance-sheet entities, thus further masking the true risks in the system. V. The securitized products were so opaque that investors could not evaluate the true risks of the investment. A. I, IV and V; B. II and III; C. I, II and IV; D. I, III and IV;

14. Which of the following statements was true about the flaws in the securitization process prior to the start of the credit crisis in 2007 ? 1. An active originate-to-distribute model where a strong profit motive took precedence over ethical lending and underwriting. II. Adoption of structured products helped investors understand and evaluate the full extent of the risk. III. Structured investment vehicles (SIVs) were used to enhance transparency and the risk discovery process for investors and regulators. IV. Banks held securitized assets in off-balance-sheet entities, thus further masking the true risks in the system. V. The securitized products were so opaque that investors could not evaluate the true risks of the investment. A. I, IV and V; B. II and III; C. I, II and IV; D. I, III and IV