Mortgages That Do Not Meet Certain Credit Criteria and Have

question 35

Multiple Choice

Mortgages that do not meet certain credit criteria and have a high probability of default are known as ________ mortgages.

• A)prepayment
• B)pooled
• C)underwater
• D)subprime

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Definitions:

Budget Line

It represents the combination of goods and services that a consumer can purchase given their income and the prices of those goods and services.

Money Income

Money Income is the total amount of monetary earnings received by an individual or household, including wages, salaries, benefits, and other income sources, over a specific period of time.

Price

The sum of money that is anticipated, demanded, or paid in exchange for something, representing the value of goods or services in financial terms.