What Effect Did the Declines in Housing Prices in the United

question 167

Multiple Choice

What effect did the declines in housing prices in the United States in the late 2000s have on the banking sector?

• A) Most banks made a lot of money by betting against housing prices, leading to a general increase in bank profits.
• B) Banks became increasingly willing to lend money to borrowers.
• C) The resulting consumer mortgage defaults resulted in large profits for banks.
• D) The resulting consumer mortgage defaults resulted in large losses for banks.

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Definitions:

Manufacturers' Agents

Independent sales agents who represent multiple manufacturers and their products without taking ownership of the goods.

Noncompetitive

Refers to a market situation where businesses face little to no competition, either due to monopolistic conditions or because they offer a unique product or service.

Complementary Merchandise

Products that are sold together or used jointly because they complement each other.

Broker

An individual or firm that acts as an intermediary, facilitating transactions between buyers and sellers for a fee or commission.