Which of the following is true concerning collateralized mortgage obligations (CMO) ahead of the 2008-09 U.S. financial crisis?

Select one:

A. All subprime mortgage bonds were pooled together in a single CMO tranche.

B. Once a CMO was created and rated, it became ineligible for further securitization.

C. A low-rated group of securities could never be given a higher rating in a CMO tranche.

D. None of the above

During the 2008-2009 U.S. financial crisis:

A. Banks' balance sheets strengthened with the increase in availability of credit

B. The value of such financial derivatives as mortgage-backed securities (CMO) increased significantly

C. There was a significant increase in the number of home mortgage defaults

D. All of the above

Which of the following statements is true on the eve of the 2008-09 U.S. financial crisis?

a. The supply of existing homes in the U.S. reached a nearly 11 month "overhang"

b. Home prices increased significantly beyond historic norms

c. Subprime mortgage lending spiked upward

d. All of the above