Mortgage Brokers Often Did Not Make a Strong Effort to Evaluate

question 9

Multiple Choice

Mortgage brokers often did not make a strong effort to evaluate whether the borrower could pay off the loan. This created a

• A) severe adverse selection problem.
• B) decline in mortgage applications.
• C) call to deregulate the industry.
• D) decrease in the demand for houses.

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Definitions:

Metal

A category of elements that are typically hard, opaque, shiny, and good conductors of electricity and heat.

Transcendentalists

A group of 19th-century American philosophers and writers who believed in the inherent goodness of people and nature, emphasizing self-reliance and individualism.

New England

A region in the northeastern United States comprising six states: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont, known for its colonial history and distinct seasonal changes.

Inventors

Individuals who create new products, processes, or ideas that have never existed before.