Which of the Following Contributed to the Rising Mortgage Default

question 135

Multiple Choice

Which of the following contributed to the rising mortgage default and foreclosure rates and the eventual economic crisis of 2008?

• A) Tightened mortgage lending standards and the reduction of loanable funds during 2001-2005.
• B) The increase in the greed of Wall Street bankers and other commercial lenders.
• C) The substantial increase in sub-prime and adjustable rate mortgages as a share of the total during 2001-2006.
• D) The increase in the household savings rate during the two decades following 1985.
• E) The increase in fixed rate mortgages as a share of the total during the decade prior to the crisis.

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Definitions:

Phonograph

An early sound-reproducing machine that used cylinders or discs to record and reproduce sound mechanically.

Liberal Judges

Judges who are generally open to reform and are often associated with advocating for civil liberties and rights.

Conservative Judges

Judges who tend to adhere to traditional values and principles in making legal decisions, often favoring judicial restraint over activism.

Centrist Judges

Judges who hold moderate views, avoiding extreme positions or decisions in the interpretation of law.