Which of the Following Statements Is True About the High

question 68

Multiple Choice

Which of the following statements is true about the high rate of mortgage defaults that contributed to the financial crisis of 2007 and 2008?

• A)High interest rates on mortgage loans were the primary cause of defaults.
• B)The high rate of defaults occurred despite the efforts of government to discourage new home ownership and slow the growth of the housing bubble.
• C)Prior to the rise in defaults, banks had become lax in their lending practices, resulting in a large number of bad loans.
• D)The high rate of defaults resulted primarily from the two years of recession preceding the mortgage default crisis.

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Definitions:

Marine Animals

Animals that live in the ocean environment, including both vertebrates and invertebrates.

Small Offspring

Refers to the progeny of an organism that are smaller in size at birth or hatching, often a strategy influenced by environmental conditions or parental investment.

Economic Defensibility

The concept that a territory can be held and defended from rivals if the benefits gained from it outweigh the costs of defense.

Territorial

Relating to the defense or occupation of a specific area or territory by an individual or group as part of its survival strategy.