Which of the Following Was Not a Factor That Contributed

question 23

Multiple Choice

Which of the following was not a factor that contributed to the subprime mortgage crisis?

• A)False security derived from FDIC insurance on mortgage loans
• B)Lower down payments
• C)Households devoting 25 percent or more of their income to mortgage payments
• D)Lending to households with adverse credit ratings

Compute the present value of annuities with regular payments under given interest rates.

Estimate the term for ordinary annuities based on payment size, interest rates, and principal amounts.

Determine the monthly or periodic payment amount needed to repay loans or accumulate a specified amount over a fixed term.

Understand and apply the principles of compounding interest and its impact on saving and borrowing.