Even though many financial institutions did not invest directly in the subprime mortgage market, they were still affected by the fall in house prices because: (choose a, b or c)

a) central bank tightened policy very aggressively

b) their borrowers could not make repayments of these mortgages

c) they held large amounts of mortgage backed securities (MBS) and collateralised debt obligations (CDOs), which they used as deposits to manage their liquidity