Which of the following is NOT true about so-called mortgage-backed securities: A. Before the crisis, they were believed by many banks to be a way of reducing loan risks B. Before the crisis, they played a major role in broadening home ownership in America C. They were linkages that spread instability across many financial institutions D. Their use was strongly discouraged by the Federal government

Respuesta :

The correct answer is letter D.

Explanation: Mortgage-backed securities are tradeable assets backed by mortgages. They allowed banks to make more loans.