The banking crisis of 2008 is quite interesting to analyze. The factors that led to this near banking collapse are intriguing to say the least. In this exercise you will be evaluating the factors that led up to the crisis and determining which ones could have created this scenario. There is no simple answer to what led to the banking crisis, as there were many factors that contributed over a long period of time. Understanding the factors that led to the crisis is very important, as such an understanding will help regulators prevent similar situations in the future. Fore each item listed, select how much it contributed to the banking crisis.

1. The repeal of some provisions of the Glass-Steagall Act of 1933
a. Major contributor
b. Not a major contributor

2. Savvy individual investors
a. Major contributor
b. Not a major contributo

3. The Community Reinvestment Act (CRA)
a. Major contributor
b. Not a major contributor

4. Borrowersâ lack of financial knowledge
a. Major contributor
b. Not a major contributor