The Increase in the Share of Loans Extended to Borrowers

question 142

Multiple Choice

The increase in the share of loans extended to borrowers with little or no down payment contributed to the financial crisis of 2008 because these loans

• A) initially depressed housing prices.
• B) were extended only to borrowers with prime credit status.
• C) had much higher default rates than loans to borrowers making larger down payments.
• D) were unavailable to low-income borrowers, who would have profited the most from such loans.

---

Definitions:

Information

Data that has been processed, organized, or structured in a way that adds context or meaning, making it useful for decision-making.

Local Unemployment

The percentage of the workforce that is not employed within a specific geographical area.

National Unemployment

The percentage of the labor force that is unable to find employment, considered an important indicator of the economic health of a country.

Average Age

The mean age of a specific group or population, calculated by dividing the sum of individual ages by the number of individuals.