Which of the following was true regarding subprime mortgages that were popular in 2005–2006?
A. More than 90 percent of these loans were made by regulated banks.
B. Bankers expected higher default rates on these loans.
C. They were generally fixed rate loans.
D. All of these responses are correct.
Answer: B
You might also like to view...
If price of a good rises, what happens to the demand for that good, all other things held constant?
A. The demand increases. B. The demand decreases. C. The demand does not change. D. The outcome depends upon the supply of the good.
What effect will an increased demand for housing in the suburbs of a major city have on the cost of vegetable farming in the suburbs?
A) No effect, since one cannot grow vegetables on land on which housing has been constructed. B) The cost will decline because only very fertile land will now be used for growing vegetables. C) The cost will rise because it will become more expensive to grow vegetables. D) The cost won't change, because there has been no change in physical conditions. E) We cannot predict unless we know what has happened to the demand for vegetables.
Possible causes of an upward-sloping demand curve are
A. consumers judge the quality of a product based on quality. B. consumers judge the quality of a product based on price. C. consumers judge the quality of a product based on recommendations by friends. D. consumers judge the quality of a product based on reviewer ratings.
If firms in a monopolistically competitive industry are operating with economic losses, over time we would see
A) firms alter their advertising rates until they made at least normal profits. B) some firms exiting the industry, causing the market supply curve to shift to the left, raising price. C) some firms exiting the industry, causing the demand curves of the remaining firms to shift to the right. D) the firms working together to increase price and everyone's profitability.