During the Great Recession of 2007-09, an increase in mortgage delinquencies and a decline in the values of mortgage-back-securities

Group of answer choices

reduced the assets of financial institutions and increased their risk of insolvency.

reduced the liabilities of financial institutions and increased their risk of insolvency.

increased the assets of financial institutions and increased their risk of insolvency.

increased the liabilities of financial institutions and increased their risk of insolvency.