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:

CPU Speed

The speed at which a computer's central processing unit (CPU) executes instructions, typically measured in Hertz (Hz); it determines the efficiency and performance of the computer's processing power.

Quad-Core Processor

A central processing unit (CPU) with four independent cores that can read and execute instructions.

Permanent Storage

Permanent storage refers to non-volatile storage media where data is retained even when power is turned off, such as hard drives, SSDs, and ROM.

CPU Usage Levels

A measure of how much processing power is being used by the central processing unit(s) of a computer.