Question

Which of the following statements is incorrect?

• A. Government provided explicit guarantees to Freddie and Fannie.
• B. Many top employees at the U.S. Treasury are from Goldman Sachs.
• C. Basel regulations pressured banks to use mathematical models to manage their risk.
• D. Fed’s mathematical models were incapable to predict the last financial crisis.

Answer 1

Option d is incorrect. Fed;s methods were capable to predict the last financial crisis however it was overlooked.

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