Predatory Lending Practices
What will be an ideal response?
- 100% financing, stated income, interest only, adjustable rate mortgages
- higher interest rate loans for credit challenged buyers
- lender continually encourages you to refinance
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Refer to Figure 9-2. As a result of the tariff, domestic producers increase their quantity supplied by
A) 31 million pounds of rice. B) 22 million pounds of rice. C) 15 million pounds or rice. D) 6 million pounds of rice.
Which of the following is most likely to be a feature of a state-contingent contract?
A) The agent pays the principal a higher licensing fee when demand is high compared to when demand is low. B) The agent makes the same wage regardless of demand. C) The agent, who lives in Nevada, earns more money on out-of-state sales (e.g., sales to California or New York) than in-state sales. D) The restaurant owner (principal) pays the waiter (agent) more when it is snowing or raining outside.
Milk costs $2 and the last unit provides $4 in marginal utility. Cheese costs $4 and the last unit provides $2 in marginal utility. Is this an efficient allocation of resources? If so, why? If not, why not?
When commercial banks retire outstanding loans, the supply of money is increased.
Answer the following statement true (T) or false (F)