As Short-Term Interest Rates Began to Rise in 2005, Which

question 328

Multiple Choice

As short-term interest rates began to rise in 2005, which one of the following mortgage loan categories experienced the largest increase in default and foreclosure rates?

• A) fixed rate mortgages to prime borrowers
• B) fixed rate mortgages to sub-prime borrowers
• C) adjustable rate mortgages extended to both prime and sub-prime borrowers
• D) adjustable rate mortgages to sub-prime borrowers only; the default and foreclosure rates of these loans extended to prime borrowers declined

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Definitions:

Symbolic Interactionism

A sociological perspective focusing on the roles that symbols, language, and communication play in the formation of self-concept and social order.

Mass Media

Forms of communication designed to reach large audiences through various mediums like television, radio, newspapers, and the internet.

Social Control

Mechanisms, strategies, and institutions used by society to regulate individual behavior and maintain social order.

Cops

Law enforcement officers tasked with maintaining public order, preventing and investigating crimes.