A Significant Aspect of the Great Recession (2008-2010) Involved White

question 25

Multiple Choice

A significant aspect of the Great Recession (2008-2010) involved white lending officials' discriminatory lending practices, including all the following EXCEPT:

• A) regularly channeling black and Latino homeowners into subprime (high-interest) home loans when they would have qualified for regular-interest, less risky loans.
• B) regularly channeling poor white homeowners into subprime (high-interest) home loans when they would have qualified for regular-interest, less risky loans.
• C) ensuring black and Latino homebuyers were more than twice as likely as white homebuyers to receive expensive subprime mortgages, even after loan amounts and household incomes were taken into account.
• D) expanding loans to families of color and making substantial profits even though lenders knew the families would have trouble repaying the loans.
• E) granting high-interest loans for second mortgages to unsuspecting customers of color with the argument that the latter could use their home equities for important needs such as paying medical bills.

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Definitions:

Skill Variety

The degree to which a job requires a range of different skills and talents to perform tasks effectively.

Job Characteristics Model

A theory that proposes that any job can be described in terms of five core job dimensions: skill variety, task identity, task significance, autonomy, and feedback, which impact three critical psychological states, leading to enhanced work outcomes.

Task Significance

The degree to which a job has a significant impact on the lives or work of other people either in the immediate organization or in the external environment.

Job Simplification

The process of breaking down jobs into their simplest components to increase productivity by reducing complexity or skill requirements.