Which of These Was a Change in Banks' Lending Practices

question 94

Multiple Choice

Which of these was a change in banks' lending practices that contributed to a housing bubble?

• A) Lenders began to require borrowers to provide proof of income.
• B) Banks began to originate subprime loans they did not intend to keep.
• C) Banks developed fixed-rate mortgage loans.
• D) Banks began to rigorously check borrowers' credit quality.

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Definitions:

Increase

A rise or growth in quantity, size, strength, or another measure.

Conflicts

Disagreements or fights between individuals or groups arising from opposing interests or views.

Employees

Individuals who work for another person or organization in exchange for compensation.

Values

The worth or importance you attach to different factors in your life.