Adjustable Rate Mortgages Became Increasingly Attractive and Grew as a Percentage

question 59

Multiple Choice

Adjustable rate mortgages became increasingly attractive and grew as a percentage of total outstanding mortgages during 2002 to 2004 because

• A) interest rates were kept artificially low during this period.
• B) interest rates rose sharply during this period.
• C) lending standards were tightened during this period.
• D) housing prices declined during this period.

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Definitions:

Unilateral Contract

An agreement in which one party makes a promise in exchange for an act by another party, without a reciprocal promise being made.

Reward

A form of compensation or incentive given in exchange for the fulfillment of a certain task or achievement.

Advertisements

Public notices promoting products, services, or events through various mediums like TV, radio, online platforms, or print media.

Specified Prices

Prices that are explicitly set out, defined, or agreed upon in a contract or agreement.