Describe the differences between traditional and nontraditional lending practices. Under which category do subprime loans belong?
In traditional lending, borrowers must provide the lender with proof of income, employment and assets. In nontraditional lending, borrowers may not be required to provide proof of income employment and assets. In addition, in traditional lending down payments are a larger percentage of the house being purchased than in nontraditional lending. Subprime loans are part of
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If goods A and B are complements, then
A) the cross elasticity of demand between A and B is negative. B) the cross elasticity of demand between A and B is positive. C) their income elasticities of demand are both greater than 1. D) their income elasticities of demand are both less than 1.
In the long run a company that produces and sells laundry detergent incurs total costs of $2,500 when output is 1,250 units and $2,750 when output is 1,500 units. For this range of output, the laundry detergent company exhibits
a. economies of scale. b. constant returns to scale. c. diseconomies of scale. d. efficient scale.
What is the opportunity cost of moving from point B to point C?
Human capital refers to:
A. the skills and knowledge that enable a worker to be productive. B. machinery used by labor in production. C. the accumulated financial wealth of households. D. physical capital owned by households rather than businesses.