Which of the Following Is Not True About Subprime Mortgage

question 234

Multiple Choice

Which of the following is not true about subprime mortgage loans?

• A) They played a central role in the financial crisis of 2007-2008.
• B) They were encouraged by the Federal government for many years before the financial crisis.
• C) They had always been discouraged by the government and even banned in some cases.
• D) They were considered high-risk loans because the borrowers had poor credit ratings.

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Definitions:

Organization Chart

A diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs.

Informal Decision-Making Coalitions

Groups formed within organizations without official status that influence decisions through informal networks and relationships.

Formal Communication Channels

Structured pathways through which official information flows within an organization, such as memos, emails, and meetings.

Staff

The employees or personnel who work for an organization or business.