Question $37$

$2$ pts

From a policy perspective, evaluation of risks for financial markets associated to the rapid growth of the real estate mortgage market should involve:

I. Understanding the ability of lenders and investors to accurately assess the risk of subprime lending, given the absence of prior experience

II$.$ Considering changes on the risk of contagion from larger domestic housing finance markets via bond markets

III. Analyzing how the growth in moritgage bond markets may impact other markets

All of the options

I and II

I and III

II