Once Housing Prices Stopped Increasing in 2007, Refinancing

question 30

Multiple Choice

Once housing prices stopped increasing in 2007, refinancing:

• A) was no longer an option, and a wave of foreclosures occurred.
• B) only occurred through higher risk, subprime loans.
• C) allowed people to convert housing equity into more liquid forms of saving.
• D) became more popular, and people's consumption accelerated overall.

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Definitions:

Standard Cost

A financial estimate used to set a cost benchmark for manufacturing products, based on expected direct material, direct labor, and overhead costs.

Per Unit

Refers to a measurement or cost attributed to each individual unit of production or purchase.

Labor Efficiency Variance

The difference between the actual hours worked and the standard hours planned, multiplied by the labor rate.

January

The initial month in the Gregorian calendar, marking the start of the year.