Which of the Following Contributed to the Rising Mortgage Default

question 135

Multiple Choice

Which of the following contributed to the rising mortgage default and foreclosure rates and the eventual economic crisis of 2008?

• A) Tightened mortgage lending standards and the reduction of loanable funds during 2001-2005.
• B) The increase in the greed of Wall Street bankers and other commercial lenders.
• C) The substantial increase in sub-prime and adjustable rate mortgages as a share of the total during 2001-2006.
• D) The increase in the household savings rate during the two decades following 1985.
• E) The increase in fixed rate mortgages as a share of the total during the decade prior to the crisis.

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Definitions:

Smuggling

The illegal trade or transportation of goods, people, or contraband across borders, bypassing legal procedures or avoiding taxes and regulations.

White Americans

Individuals residing in the United States who identify as having origins in any of the original peoples of Europe, the Middle East, or North Africa.

Tecumseh

A Native American leader of the Shawnee and a large tribal confederacy which opposed the United States during Tecumseh's War and the War of 1812.

Speech to the Osage

refers to a specific historical address or set of remarks made to the Osage Nation, likely involving topics relevant to this Native American people and their interactions with the U.S. government or other entities.