Regulatory Policies Requiring Lenders to Extend More Low Down-Payment Loans

question 101

Multiple Choice

Regulatory policies requiring lenders to extend more low down-payment loans to higher-risk borrowers along with the Fed's low short-term interest rate policy during 2002-2004 caused

• A) an increase in demand for housing and higher housing prices.
• B) an increase in demand for housing and lower housing prices.
• C) a reduction in demand for housing and higher housing prices.
• D) a reduction in demand for housing and lower housing prices.

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Definitions:

Structural Rules

The established guidelines or principles that define the configuration, construction, or procedure within a structure or system.

Social Rules

Implicit or explicit guidelines that govern behavior within a group or society.

Feelings of Equity

Perceptions of fairness in treatment, rewards, and workload among individuals or groups.

Need for Achievement

The drive to excel, to achieve in relation to a set of standards, and to strive to succeed.