Subprime mortgages are:
a. Mortgages loans to individuals who have lower credit ratings than would normally be approved by mortgage originators.
b.Mortgage loans that were correctly underwritten but encountered problems in the securitization process.
c. Mortgages that are healthy but not ready to be securitized.
d. Mortgages that carry interest rates below the U.S. prime rate.
e. None of the above.
.A
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If money is declared to be legal tender, it must be
A) minted from a precious metal. B) acceptable to citizens of foreign countries. C) possible to exchange it for an equivalent amount of precious metal. D) accepted to settle private transactions and it must be used in paying taxes.
Which of the following is true about U.S. history prior to the 1950s?
a. The inflation rate remained constant during this period b. Cost-push inflation led to depressions, which were followed by slowly-rising price levels. c. The price level remained constant during this period. d. Major wars resulted in high inflation rates, after which the inflation rate tapered off. e. Major wars resulted in high inflation rates that were usually followed by deflation.
During 2007-2008, the price of gasoline increased from approximately $1.50 to $4.00 per gallon. As a result, the
a. demand for gas guzzling automobiles, such as the Hummer, decreased, causing their price to decline. b. supply of gas guzzling automobiles decreased, causing their price to increase. c. demand for gas guzzling automobiles increased, causing their price to increase. d. supply of gas guzzling automobiles increased causing their price to fall.
After the financial crisis of 2008, how did some Eurozone governments finance the bailout of their financial sectors?
A) by raising taxes B) by issuing new government bonds, which were purchased by private banks, funded by ECB lending C) by printing more domestic currency to accompany infusions of euros from the ECB D) by selling foreign currency reserves and gold