Which of the Following Was Not a Factor That Contributed

question 42

Multiple Choice

Which of the following was not a factor that contributed to the subprime mortgage crisis?

• A)false security derived from FDIC insurance on mortgage loans 
• B)lower down payments 
• C)households devoting 25% or more of their income to mortgage payments 
• D)lending to households with adverse credit ratings

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Definitions:

Risk Taking

Risk taking involves engaging in actions that expose one to the chance of loss or harm in the hope of achieving a desired outcome, often playing a crucial role in decision-making and innovation.

Distortion Tactics

Strategies or maneuvers used to twist or manipulate information, perceptions, or facts, often to achieve personal or organizational objectives.

Lying

The act of communicating false information with the intent to deceive.

Continuum

A continuous sequence in which adjacent elements do not vary significantly from each other but the extremes are quite distinct.