7. Securities and risks
A ____ is a financial instrument created by pooling a large number of home loans. Which of the following statements best explains how it contributed to the financial crisis of 2007-2009?
? It made investment banks less interested in the housing market.
? It reduced incentives among lenders to vet borrowers for the risks of defaulting on their home loans.
? It discouraged borrowing among low-income homebuyers.