During the housing boom of the mid-2000s, many lenders made mortgage loans to homebuyers who typically had flawed credit histories which made these borrowers high credit risks
These homebuyers were typically charged interest rates that were initially low but would rise after a period of years to very high rates. Homeowners who took out these types of mortgages are often referred to as A) payday borrowers.
B) default-risk intermediaries.
C) subprime borrowers.
D) FHA customers.
C
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Refer to the scenario above. If the government of India wants to repay a lower sum of money to the U.S., it should:
A) buy both dollars and rupees. B) sell both dollars and rupees. C) buy dollars and sell rupees. D) buy rupees and sell dollars.
The consumer price index for the current year measures the cost of a standard basket in the ________ year relative to the cost of the same basket in the ________ year.
A. current; current B. base; current C. base; index D. current; base
A sizable appreciation of the U.S. dollar in the mid-1980s
a. raised U.S. exports and imports. b. raised U.S. exports and reduced imports. c. reduced U.S. exports and imports. d. reduced U.S. exports and raised imports.
Cross country data illustrates that rapid expansion in the supply of money over a lengthy period of time (for example, a decade) leads to
a. rapid growth of real output. b. a low real rate of interest. c. high rates of inflation. d. an inflow of capital and a high rate of investment.