Which of the Following Contributed to the Soaring Housing Prices

question 114

Multiple Choice

Which of the following contributed to the soaring housing prices during 2002-2004?

• A) the Fed's high-interest rate policy
• B) the tightening of loan standards by commercial lenders
• C) the increasing popularity of fixed-rate, long-term loans to lock in low interest rates
• D) the Fed's low-interest rate policy

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Definitions:

Recognise

The accounting process of officially recording an item or transaction in the financial statements.

Monthly Payment

The amount of money that is paid on a monthly basis for the use of a service or repayment of a loan.

IFRS Advisory Council

A group that provides the International Accounting Standards Board (IASB) with strategic advice on the setting and implementation of international financial reporting standards.

IFRS Foundation Trustees

The oversight body responsible for governance and oversight of the International Financial Reporting Standards Foundation.