Who Said, "Subprime Mortgages Can Be Productive and Fruitful

question 256

Multiple Choice

Who said, "Subprime mortgages can be productive and fruitful. We just have to put boundaries in place"?

• A) CEO of Citigroup
• B) CEO of Merrill Lynch
• C) North Carolina's Attorney General
• D) Alan Greenspan

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Definitions:

Legal Interest Rate

The maximum rate of interest that lenders can legally charge borrowers, often set by law or regulation.

Economic Profits

Profits that exceed the opportunity costs of all resources used by a firm, including both explicit and implicit costs.

Accounting Profits

The financial gain calculated by subtracting total explicit costs from total revenue, as recorded in the financial statements.

Explicit Costs

Costs that involve direct monetary payment by a business to purchase or maintain resources.