The Major Wave of Defaults on Home Mortgages in 2007

question 54

Multiple Choice

The major wave of defaults on home mortgages in 2007 destabilized

• A) only the banks that directly made the mortgage loans.
• B) only the mortgage brokers, not the commercial banks.
• C) many banks, including those that made the loans indirectly.
• D) mostly large banks, but not too many small ones.

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually triggers a conditioned response.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention.

Unconditioned Response

An automatic, natural response to a stimulus that occurs without prior learning or conditioning.

Conditioned Stimulus

A previously neutral stimulus that, after being paired with an unconditioned stimulus, elicits a conditioned response.